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Written question asked by Bambos Charalambous (Labour) on Monday, 8 December 2025, in the House of Commons. It was due for an answer on Wednesday, 10 December 2025. It was answered by Lucy Rigby (Labour) on Tuesday, 16 December 2025 on behalf of the Treasury.

Motor Vehicles: Credit

Question

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that (a) people with mental health difficulties, (b) caring responsibilities, (c) financial hardship and (d) other vulnerable consumers are not disproportionately affected during the motor finance redress process.

Answer

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.

The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.

Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

Secondary information

Type
Written question
Reference
97950
Session
2024-26
Grouped for answer
Yes
Subjects
Compensation Carers Credit Mental illness Low incomes Motor vehicles
Link
View this Written question on www.parliament.uk