Parliamentary Group Urges Review of Financial Watchdog's Car Finance Scheme

November 4, 2025 - 02:20

A new report from the All-Party Parliamentary Group on fair banking calls on the UK financial watchdog to revisit its proposed redress scheme. The report raises concerns that the current framework may not adequately protect consumers who have been misled or mistreated in car finance agreements.

MPs have highlighted that many individuals are unaware of their rights and the potential for unfair treatment in the car finance market. The proposed scheme, they argue, could leave consumers without the necessary support and compensation they deserve.

The group emphasizes the need for a more robust approach to ensure transparency and fairness in car finance transactions. They recommend that the financial watchdog take immediate action to enhance consumer protections and provide clearer guidance on the rights of individuals entering into these agreements.

As the debate continues, the call for reform underscores the importance of safeguarding consumer interests in an increasingly complex financial landscape.