Industry Thoughts

Following the publication of the FCA’s motor finance consultation paper (CP25/27) in October 2025 and the consultation closing on 12 December 2025, the regulator has confirmed that it will set out its approach on motor finance redress shortly after markets close on Monday 30 March 2026. In a previous update on 4 March 2026, the FCA also outlined planned changes intended to streamline the customer journey and simplify implementation of a redress scheme.

So it’s the middle of March 2026. Were we expecting the policy statement from the Financial Conduct Authority (the FCA) on a motor finance consumer redress scheme by now? Yes. Do we have it? No. The FCA’s latest murmurings are that it will publish the scheme by the end of March 2026. So, for now, we wait. But given the proposed scheme is entirely based on the unfair relationship provisions in Sections 140A to 140C of the Consumer Credit Act 1974 (the CCA) (the unfair relationship provisions), what do they actually say?

The debate around discretionary commission arrangements (DCAs) in motor finance has developed rapidly over the past year, with regulatory scrutiny, legal developments and the FCA’s ongoing work on a potential redress scheme bringing increased focus to the sector. Final decisions on any compensation scheme have not yet been made. However, the regulator has begun outlining how a redress scheme could operate if it goes ahead. For many firms, the question now is simple: what does it mean to be “ready”?

The regulatory landscape for motor finance is shifting rapidly. Following the Financial Conduct Authority’s (FCA) latest update on 4 March 2026, the industry now has a much clearer view of the road ahead. With final rules expected in late March, the focus has shifted from hypothetical planning to urgent operational implementation.

Lantern Group today announced that it has agreed to acquire Ascent, one of the UK’s largest specialist debt recovery law firms, from Irwin Mitchell, subject to regulatory approval. The acquisition expands Lantern Gorup’s portfolio, with Ascent joining Lantern and Sonex. Irwin Mitchell’s strategy is to focus on growing its core legal services for individuals and businesses such as complex personal injury, medical negligence, private client, family, real estate, corporate and employment law.

Lantern Group, a leading UK debt management and financial services company, has announced three strategic senior appointments as part of its commitment to growth, innovation and customer-centric service delivery. The company welcomes Charlotte Symonds as Chief Operating Officer, Charmaine Bonnaire as Director of Partnerships, and Scott Forster as Head of Brand and Communications.

It wasn’t until late 2024 that UK fraud leaders began taking notice of the rise of synthetic identity fraud – until then it had been an unrecognised threat, with most organisations lacking monitoring and reporting insight. However, in the US, synthetic identity fraud has been surging, with estimated exposure of $3.1 billion across sectors in 2024.

In recent years, along with other sectors the financial services industry has been highlighting the significant benefits from the usage of artificial intelligence (AI). Some of the largest perceived benefits include in combatting fraud, customer engagement and services, and customer care. Similarly, apps and digital platforms have changed customer journeys.

A successful migration is more than moving data – it’s about transforming both the data and the business. Having led and seen dozens of migrations, here are the lessons that matter most before making the leap, informed by some of Lenvi’s recent migration projects.

A resilient subprime credit market is essential to providing access to credit among underserved groups and ensuring financial inclusion in a changing regulatory and competitive landscape. The size and shape of the subprime credit sector has changed considerably over the past decade which has been driven by a combination of regulatory reforms, shifting consumer behaviours and economic pressure. By way of example, the ‘high-cost’ credit sector has reduced by almost £3 billion of lending since 2019, with more than 250 firms exiting the market, according to the FCA.

To customers, lenders and brokers are one experience. The FCA’s Consumer Duty makes that explicit: any firm that can determine or materially influence a retail outcome has responsibilities commensurate with its role. That has real consequences for distribution. Manufacturers must design products for a defined target market and monitor how brokers sell them, including the cumulative impact of fees and commissions on fair value. Discretionary commission models in motor finance are gone, but the principle remains: if incentives can predictably distort outcomes, they must change.

As the festive season approaches, so too does the pressure to spend. From social media wish lists to endless retail promotions promising the ‘perfect’ Christmas, the expectation to buy, give and celebrate grows stronger each year. As a result consumers are choosing to spread the cost of festivities, leading to a surge in short-term credit, particularly through Buy Now, Pay Later (BNPL) schemes.