In a cluster of publications, the FCA (Financial Conduct Authority) recently issued Notice of Decision series against three motor-finance related firms. The actions are the most recent ones taken by the regulator in the current car finance scandal which still plagues millions of consumers in the UK. It has published decision notices against Elect Automotive Ltd [1], RI Auto Ltd [2], and Limitless Automotive Limited [3], highlighting serious concerns regarding conduct, compliance and oversight in the motor finance industry.

Moves which are yet another significant step in the FCA’s current enforcement plans as it publicly demonstrates its continued efforts to take action against firms it considers to have acted incorrectly in the motor-finance market. For those who have been following the latest updates on car finance claims in the UK closely, this news could not come at a more pivotal time with both a redress scheme and Supreme Court judgement set to influence future decisions on compensation.

FCA Decision Notices and What They Mean for Consumers

FCA’s decision notices sometimes serve as the “rubber stamp” for where a firm missed the mark. The Notices issued on Elect Automotive, RI Auto, and Limitless Automotive provide those “rubber stamps” for failures that end up questioning the treatment of customers and if obligations were handled in a financially responsible way.

While the notices themselves are technical, they provide evidence that systemic issues persist across parts of the car finance ecosystem. For claimants, this reinforces the importance of ongoing regulatory scrutiny, especially at a time when FCA expects to pay compensation to millions of mis-sold car finance customers next year under its forthcoming redress framework.

Consumers should not overlook the significance of today’s notices. Even if these particular firms are not household names, they contribute to a bigger picture: lenders and intermediaries operating without the standards the FCA demands.

The Supreme Court Ruling and the Wider Car Finance Scandal

The FCA’s enforcement activity is cast in the long shadow of a landmark Supreme Court ruling [4] which established that while not all commissions are automatically unlawful, undisclosed or overstated discretionary commissions can amount to an "unfair relationship" under consumer credit law and that millions of borrowers may have been mis-sold finance deals between 2007 and 2021. This judgement is regarded as one of the most consequential legal developments in the history of consumer finance.

The scandal stems from the practice of discretionary commission arrangements, where brokers could increase interest rates to boost their own commission. This was banned in 2021 yet it is believed that billions were overpaid by ordinary drivers. The Supreme Court's ruling in favour of the pursuit of PCP claims has brought clarity, but also raised the question of how fair and efficient redress will be.

Notably, surveys suggest that only 23% of people trust lenders to handle payouts fairly [5]. The difficulty regarding the provision of compensation is more evident when the lenders have already reported that part of the customer records is lost or has been erased. Compounding this, 57% of potential claimants have moved house since their finance deal and millions have misplaced paperwork, leaving many unsure how to prove their eligibility for a car finance refund.

What Comes Next: FCA Consultation and Consumer Concerns

In October, the FCA will open a formal consultation on the details of an industry-wide redress scheme [6]. This should contain information on the calculation of redress, eligibility and liability that the lenders will face. For many, this will be the moment they have been waiting for in the car finance claims saga, as the FCA finds the right balance between what is fair and what is workable.

Average redress amounts remain under discussion, though early estimates suggest payments for a discretionary commission claim can be approximately £950 per agreement [7]. Still, this could reach significant levels depending on the size of the loan and the level of discretionary commission. However, concerns persist around what happens if a company ignores the ombudsman after being instructed to pay compensation. Industry insiders warn that some firms may delay or resist payouts, leaving consumers caught between regulators, lenders, and the legal system.

For this reason, financial advisers and finance claims expert commentators are urging consumers to stay proactive. Waiting passively may mean losing out, especially if lenders prove obstructive. Questions such as how long does Reclaim247 take to process a claim are becoming more common as people seek clarity on their options.

Should You Consider a Claims Management Company?

While some financial commentators advise waiting for the FCA’s redress scheme to take effect, others argue that this could leave many people at risk. If you are one of the millions who cannot locate paperwork, no longer live at the same address, or simply don’t trust the lender that profited from the mis-sold deal, working with a claims management company can be a practical alternative.

Here’s the reality:

• 14 million people were mis-sold car finance between 2007 and 2021.
• Only 23% trust lenders to pay out fairly.
• 57% have moved address, and over 8 million have lost paperwork.

That means many risk being left behind in the redress process.

If you’re unsure who your lender was, can’t find paperwork, or just want someone to fight your corner, Reclaim247 can help. All they need is your name, address, and date of birth. No paperwork. No car reg. No win, no fee. Reclaim247 is FCA-authorised, with solicitors handling claims. Terms and eligibility apply.

Conclusion

The FCA’s decision notices today serve as another reminder that the regulator is actively pursuing firms that fail to meet their obligations. Nevertheless, the larger narrative is yet to be unraveled with the Supreme Court decision, the October consultation by the FCA, and billions of dollars in redress that consumers may receive.

If you are affected, the decision is yours: wait for the redress scheme and hope lenders will play fair; or be proactive and fight your corner with professional help. Whichever path you take, one thing is for sure: the scale of the car finance claims crisis means this issue isn’t going away, so consumers should stay vigilant and stay informed.

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References:

1. FCA Notice of Decision for Elect Automotive Ltd - https://www.fca.org.uk/publication/decision-notices/elect-automotive-ltd-2025.pdf
2. FCA Notice of Decision for RI Auto Ltd - https://www.fca.org.uk/publication/decision-notices/ri-auto-ltd-2025.pdf
3. FCA Notice of Decision for Limitless Automotive Limited - https://www.fca.org.uk/publication/decision-notices/limitless-automotive-limited-2025.pdf 
4. Supreme Court ruling - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
5. only 23% of people trust lenders to handle payouts fairly - https://www.slatergordon.co.uk/newsroom/consumers-trust-the-financial-conduct-authority-to-resolve-the-car-finance/
6. In October, the FCA will open a formal consultation on the details of an industry-wide redress scheme - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
7. payments for a discretionary commission claim can be approximately £950 per agreement - https://www.birminghammail.co.uk/motoring/motoring-news/14-million-drivers-could-receive-32193839