Consumer Rights Roundup: £7.5bn Motor Finance Payouts, Faster Telecoms Complaints & Tumble Dryer Recall
The FCA's motor finance redress scheme is now confirmed. Here's what you need to know about the £7.5 billion in compensation, plus faster telecoms complaint escalation and an urgent tumble dryer safety recall.
This week brought some of the biggest consumer rights developments of the year. If you have a car finance agreement, a broadband complaint, or a tumble dryer from certain brands, read on.
Motor Finance: £7.5 Billion in Compensation Confirmed
The Financial Conduct Authority has officially confirmed its motor finance consumer redress scheme, and the numbers are staggering: £7.5 billion in total compensation across 12.1 million eligible agreements.
Who qualifies?
If you took out a motor finance deal between 6th April 2007 and 1st November 2024, you may be owed money. The scheme covers cases where lenders failed to properly disclose:
- Discretionary Commission Arrangements (DCAs): where brokers could adjust your interest rate to earn more commission
- High commission: where commission exceeded 39% of the credit cost or 10% of the loan amount
- Contractual ties: where lenders had exclusivity or right of first refusal arrangements
Key dates you need to know
| Deadline | What happens |
|---|---|
| 30 June 2026 | Implementation deadline for agreements from April 2014 onwards |
| 31 August 2026 | Implementation deadline for pre-2014 agreements |
| 31 August 2027 | Final deadline to make a complaint |
You don't need a claims company
This is important: you do not need to pay a claims management company (CMC) to make a claim. You can complain directly to your lender for free. Using a CMC could cost you over 30% of any compensation you receive.
In fact, this week the FCA banned one such firm, Conclusive Financial Ltd (trading as "PCP Refunds"), for using unauthorised video clips of Martin Lewis and the FCA's own logo to mislead consumers about compensation amounts.
Since January 2024, the FCA has forced the removal or amendment of 899 misleading CMC advertisements.
What to do now
- Check whether your car finance agreement falls within the eligible period
- Wait to be contacted by your lender: they're required to reach out if you're owed money
- If you want to act sooner, complain directly to your lender
- If you're not satisfied with the response, escalate to the Financial Ombudsman Service
Telecoms Complaints: You Can Now Escalate Faster
From 8th April 2026, Ofcom has reduced the waiting period before you can take your broadband, mobile, or landline complaint to an independent ombudsman: from 8 weeks down to 6 weeks.
This means if your provider hasn't resolved your complaint within six weeks of you raising it, you can escalate to either the Communications Ombudsman or CISAS (Communications and Internet Services Adjudication Scheme) at no cost.
Updated compensation rates
Ofcom's auto-compensation scheme rates have also increased from 1st April 2026:
| Issue | Daily rate |
|---|---|
| Delayed repair after reported fault | £10.34/day |
| Missed engineer appointment | £32.31 per appointment |
| Delay starting a new service | £6.46/day |
If your provider is signed up to the scheme, you should receive this compensation automatically. If not, you can still claim it. And the faster escalation timeline gives you more leverage.
Urgent: 85,000 Tumble Dryers Recalled for Fire Risk
The government has issued an urgent safety alert for 85,000 heat pump tumble dryers that present a serious fire risk due to an internal short circuit that can occur during normal use.
Brands affected
The recall covers tumble dryers manufactured by Haier, sold under eight different brand names:
- Haier
- Candy
- Hoover
- Lamona
- Baumatic
- Iberna
- Caple
- Montpellier
What to do
Stop using the dryer immediately and unplug it where safe to do so. The manufacturer is arranging home visits to make the appliances safe.
Contact the recall helpline: 0808 178 0516 (Monday to Friday 9am-5pm, Saturday 10am-4pm)
Energy Bills: Price Cap Drops to £1,641
Some welcome news for household budgets: the energy price cap fell 6.6% to £1,641 per year for a typical dual-fuel household paying by Direct Debit, effective from 1st April 2026.
A key driver is the government scrapping the Energy Company Obligation (ECO) levy and moving green levies to general taxation: potentially saving households around £150 per year.
| Payment method | Annual cap |
|---|---|
| Direct Debit | £1,641 |
| Prepayment | £1,597 |
| Cash/cheque | £1,772 |
The next price cap review will be announced in May 2026, taking effect from July.
This Week's Takeaway
The motor finance redress scheme is the story of the year for consumer rights. If you have, or had, a car on finance, it's worth checking whether you're eligible. Don't pay a CMC to do something you can do for free.
And if you're stuck in a broadband or mobile complaint, remember: you now only need to wait six weeks before escalating.
Have questions about any of these developments? Ask Atlas: our AI assistant can help you understand your rights and next steps.
This roundup is compiled from public regulatory sources including the FCA, Ofcom, Ofgem, and GOV.UK. EvenStance provides this information for general guidance only: it is not legal advice.
