Documents relating to the motor finance compensation scheme legal challenge, including the directions of the Upper Tribunal.
On 30 March 2026, we established the Motor Finance Commission Consumer Redress Scheme (the Scheme) pursuant to ss.404 and 404A of the Financial Services and Markets Act 2000 (FSMA).
The lawfulness of the Scheme is being challenged by: CA Auto Finance UK Limited (CAAF); Consumer Voice Limited (CV); Mercedes-Benz Financial Services UK Limited (MB); and Volkswagen Financial Services (UK) Limited (VW), pursuant to s.404D(1) of FSMA.
The Upper Tribunal (Tax and Chancery Chamber) has jurisdiction to hear the case.
On this page, we will publish certain key documents in the case and the directions of the Tribunal made on or after 30 June 2026.
Pleadings
- CAAF’s application (PDF)[2] and its statement of grounds (PDF)[3].
- CV’s application (PDF)[4] and its statement of grounds (PDF)[5].
- MB’s application (PDF)[6] and its statement of grounds (PDF)[7].
- VW’s application (PDF)[8] and its statement of grounds (PDF)[9].
- The FCA's grounds of response (PDF)[10].
Directions
- The Tribunal’s directions order (PDF)[11] dated 1 July 2026 setting out how the challenges are to be case managed.
- The Tribunal’s suspension order (PDF)[12] dated 1 July 2026 and the appendix to the order (PDF)[13], partially suspending the Scheme.
- The Tribunal's directions order dated 2 July 2026 (PDF)[14], concerning service to the Finance & Leasing Association of documents related to CV’s application.
The directions order of 1 July 2026 (among other things) requires any person who wishes to be added as an Interested Party to the proceedings to make an application within 28 days of the date the order is published on our website, ie by 11.59pm on 4 August 2026. The order contains further details on the required form and substance of any application.
Read more about the suspension order and the provisions which remain in force in our statement[15].