Consumer Protection news in 2025
24 stories, newest first.
- December 2025
FCA launches firm checker tool to help consumers avoid scams
The Financial Conduct Authority has launched a new firm checker tool so consumers can confirm whether a financial services firm is authorised and holds permission to sell products and services.
Consumer Scotland responds to FCA consultation on motor finance consumer redress scheme
Consumer Scotland has told the FCA's motor finance redress consultation that compensation should match court levels, that the scheme must be free to access and that lenders should chase customers.
HSBC Life (UK) Limited acquired by Chesnara plc and renamed Chesnara Life (UK) Ltd
HSBC Life (UK) Limited has been bought by Chesnara plc and renamed Chesnara Life (UK) Ltd, with policyholders and advisers notified by letter or email during December 2025 and January 2026.
- November 2025
FSCS deposit protection limit rises to £120,000
The Prudential Regulation Authority has confirmed that FSCS deposit protection rises from £85,000 to £120,000 per person, per authorised firm, for firms failing on or after 1 December 2025.
Fair4All Finance responds to three consultations on FOS reform and redress modernisation
Fair4All Finance has published responses to three consultations on reforming the Financial Ombudsman Service and modernising the UK redress system, backing closer FCA alignment and changes to case fees.
Trustpilot removes fake reviews and warns flagged firms
Trustpilot removed further fake reviews, warned four firms and placed permanent consumer warnings on their profiles after Which? reported recovery scammers targeting scam victims on the platform.
PRA confirms final rules on deposit compensation limit increase
The Prudential Regulation Authority confirmed final rules in November 2025 raising the FSCS deposit compensation limit to £120,000, effective for firm failures from 1 December 2025.
- October 2025
Consultation on the review of the Financial Ombudsman Service closes
The government's consultation on reforming the Financial Ombudsman Service, including a proposed 10-year absolute time limit for complaints, closed on 8 October 2025.
Consumer Scotland responds to HM Treasury consultation on the review of the Financial Ombudsman Service
Consumer Scotland has told HM Treasury it opposes a 10 year absolute time limit for Financial Ombudsman Service complaints, a merger of the ombudsman with the FCA, and new FCA referrals.
FCA launches consultation on proposed car finance redress scheme
The Financial Conduct Authority has opened a consultation on an industry-wide compensation scheme for motor finance customers overcharged on car finance deals taken out between April 2007 and November 2024.
Guidance updated for Digital Markets, Competition and Consumers Act 2024
Trading standards guidance for England, Scotland and Wales was updated in October 2025 to reflect the Digital Markets, Competition and Consumers Act 2024, though its redress provisions are not yet in force.
- September 2025
Treasury answers parliamentary question on mis-sold car finance compensation
The Treasury told Parliament on 8 September 2025 that it is working with the Financial Conduct Authority and Prudential Regulation Authority on motor finance commission practices, after the Supreme Court clarified the law.
Guide updated for Digital Markets, Competition and Consumers Act 2024 unfair trading provisions
Trading Standards consumer guidance for England, Scotland and Wales has been updated to reflect the unfair trading provisions of the Digital Markets, Competition and Consumers Act 2024 coming into force.
- August 2025
Consumer Scotland responds to FCA consultation on targeted support for pensions and investment decisions
Consumer Scotland has published its response to the Financial Conduct Authority's consultation on targeted support, setting out evidence on the advice gap in pensions and investments.
Motor finance commission complaints fall to 21,500
New motor finance commission complaints at the Financial Ombudsman Service fell to 21,500 between April and June 2025, down from 36,000 in the final quarter of 2024/25.
Unaffordable lending complaints halve year on year
The Financial Ombudsman Service processed 68,000 new complaints between April and June 2025, with unaffordable lending cases halving to 10,000 from 21,600 a year earlier.
- April 2025
Which? finds potentially unfair storm and flood definitions in home insurance policies
Which? analysis of 133 home insurance policy documents from 67 firms found 32% contained a potentially unfair definition of flood and 20% a potentially unfair definition of storm.
CMA publishes guidance on its approach to direct consumer protection
The Competition and Markets Authority has published a 19-page document setting out how it will approach direct consumer protection under the new consumer protection regime.
Chapter 1 on protection from unfair trading valid from 6 April 2025
Chapter 1 of Part 4 of the Digital Markets, Competition and Consumers Act 2024, which prohibits unfair commercial practices, is valid from 6 April 2025 and replaces the 2008 regulations.
Schedule 20 banned commercial practices come into force
Thirty-two commercial practices listed in Schedule 20 of the Digital Markets, Competition and Consumers Act 2024 became unfair in all circumstances on 6 April 2025, under commencement regulations S.I. 2025/272.
- March 2025
PRA consults on raising FSCS deposit protection limit to £110,000
The Prudential Regulation Authority has proposed raising the FSCS deposit protection limit from £85,000 to £110,000 from 1 December 2025, with a higher limit for temporary high balances.
HM Treasury announces review of the Financial Ombudsman Service
HM Treasury has announced a review of the Financial Ombudsman Service, including its compensation practices, as the service consults on replacing its long-standing 8% interest rate on awards.
PRA consults on raising FSCS deposit protection limit from £85,000 to £110,000 and THB limit from £1 million to £1.4 million
The Prudential Regulation Authority has proposed raising FSCS deposit protection from £85,000 to £110,000 and the temporary high balance limit from £1 million to £1.4 million, both from 1 December 2025.
- January 2025
Nationwide introduces payment queueing system after surge on first working day of 2025
Nationwide introduced a payment queueing system on 4 January 2025 after a surge in payments, with around 20,000 direct debits failing and £60 compensation paid to affected customers.