The UK consumer credit sector: Market update and sector insights – July 2026

As well as an overview of the current market environment and key regulatory developments for 2026, our report takes an in-depth look at the following hot topics:

• Motor finance: legal challenges bring uncertainty to redress scheme – the latest developments in the FCA's proposed compensation scheme following legal challenges that have introduced material uncertainty to both timing and the scheme rules
• Motor finance: undertaking a business health check – why firms should consider a proactive assessment of their financial and operational resilience now, to determine whether they can absorb their obligations across a range of potential outcomes, and to ensure directors are meeting their statutory duties during a period of heightened scrutiny
• Remediation: a more structured, proactive era – the FCA and Financial Ombudsman Service have jointly proposed a significant overhaul of the UK's consumer redress framework, signalling a decisive shift from reactive, firm-by-firm remediation towards a more coordinated and, in some cases, industry-wide approach
• Debt collection: AI and the race for efficiency – why significant investment in digital transformation and AI is becoming a prerequisite for attracting capital, particularly as the sector approaches a material refinancing wall in 2028–29
• Buy now pay later: final rules confirmed – a summary of the key changes applicable from regulation day on 15 July 2026

Download the report [ 5585 kb ]

For more insight and guidance, get in touch with Chris Laverty or Jarred Erceg.