Section 21 is dead, motor finance is in the courts on four fronts, and Lloyds' breach grew past 530,000 customers

A heavy week for consumer rights. The headlines:

• Four legal challenges at the Upper Tribunal to the FCA's £9bn motor finance redress scheme.
• Section 21 no-fault evictions abolished from 1st May.
• The Lloyds Banking Group data breach now confirmed to affect more than 530,000 customers.
• Sapia agreed to pay £19.6m in voluntary redress over its WealthTek client-money failures.
• Claire's UK closed all 154 standalone stores with 1,300 redundancies.
• The FCA charged a mortgage broker who was banned from financial services in 2008 and is alleged to have operated regardless for almost two decades.

Detail and what to do about each, below.

Motor finance: four challenges, one answer (file your complaint)
On 1st May the FCA confirmed it is defending PS26/3 against four separate challenges at the Upper Tribunal:

1. Consumer Voice (filed 23rd April) saying the scheme under-pays
2. Mercedes-Benz Financial Services UK (filed 30th April) saying the scheme is too generous
3. Volkswagen Financial Services UK (filed 30th April) saying the same
4. Crédit Agricole Auto Finance (latest).
5. The Finance & Leasing Association and Santander confirmed on 27th April they will not contest. So the lender-side push is a minority position, but a noisy one.
6. Santander UK has set aside €207m in provisions.
7. Mercedes has appealed to the Upper Tribunal as one of the loudest objectors.

The FCA's position is firm: the scheme is the fastest, simplest route for consumers and any alternative would be slower and much more costly. The complaint deadline is unchanged at 31st August 2027. The complaint-handling pause lifts on 31st May 2026, and from then firms must resume processing complaints under PS25/18.

If you had a PCP, HP or conditional sale agreement between 6th April 2007 and 1st November 2024, file your complaint now. The four challenges each take months, and being on the lender's books before any ruling lands is what puts you into the priority bucket. The FCA also issued a pointed reminder this week to CMCs and law firms about their obligations to act in their clients' best interests, particularly around motor finance. Most consumers don't need a CMC: the complaint goes direct to the lender, and the FCA scheme is free to use.

Section 21 evictions are abolished from 1st May
The Renters' Rights Act 2026 has commenced. Section 21 of the Housing Act 1988 is gone. Any landlord who serves a Section 21 notice on or after 1st May is doing two things at once: serving an invalid notice, and committing an offence with a civil penalty up to £7,000 per breach that local authorities can punish.
Some of the structural changes that affect every renter in England:

• Every assured shorthold tenancy converts automatically to an open-ended periodic tenancy. You don't need to sign anything.
• Landlords can still seek possession, but only via Section 8 and only on a specified statutory ground. They have to specify the ground and prove it.
• Disrepair complaints just got more powerful. Asking your landlord to fix the damp no longer risks a retaliatory Section 21. If you've been holding off on a disrepair complaint, this is the day to start the paper trail.
• The arrears threshold for possession went from two months to three.
• Civil penalties of up to £7,000 give local authorities a real enforcement lever for the first time in years.
• Rent Repayment Orders can now run to two years' rent for certain offences.

If you receive a Section 21 notice dated 1st May 2026 or later, do not move out. It's invalid. Take a screenshot, note the date, and report it to your local authority's housing standards or private-sector housing team. Citizens Advice told the press it's already supporting more than 200 people a day on disrepair, evictions and rent hikes. Demand is real. The advice channels will be saturated.

Lloyds, Halifax, BoS: data breach grew past 530,000
The botched 12th March 2026 mobile-banking app update was bigger than first reported:

• 446,915 logged-in users were shown other customers' transactions
• 107,937 of those clicked into exposed transactions and may have seen sort codes, account numbers and National Insurance numbers
• 80,805 joint account holders were affected without ever logging in
• Total exposed: more than **530,000 people** across Lloyds, Halifax and Bank of Scotland

Lloyds has so far paid "just over £201,000" (about **£40 each**) to around 5,250 people for distress and inconvenience. The Treasury Committee Chair called it "an alarming breach of confidentiality". The ICO is investigating.
NI numbers paired with sort codes and account details give fraudsters real leverage. £40 is an opening offer, and your circumstances may well justify pushing for more.

There are three kinds of claim available.

1. First, distress and inconvenience: you can ask for compensation for the worry, the time spent checking your account, and any precautions you took.
2. Second, financial loss: if your data was used (or attempted) to commit fraud or open accounts in your name, that's a larger and separate claim, so keep evidence.
3. Third, an ICO complaint, which can't award you money but strengthens any regulatory action and creates a record on the file.

Route: complain to the bank first, citing the 12th March 2026 mobile-banking app data exposure. If unresolved after 8 weeks, escalate to the Financial Ombudsman Service. In parallel, file an ICO complaint at ico.org.uk. Consider CIFAS Protective Registration (£30, 2 years) if you're worried about identity fraud.

A separate Lloyds app outage in the same period is being settled at £40 in goodwill, which compounds the disruption.

Sapia pays £19.6m over WealthTek
The FCA censured Sapia Partners on 23rd April after it admitted that the same people who could move money out of WealthTek client accounts were also doing the FCA-required checks of those accounts. Sapia is paying £19,637,950 in voluntary redress (parent-company funded). £19.1m to the WealthTek administrators (so it can flow back to clients with shortfalls), £500,000 to the FSCS. Without the voluntary payment and full cooperation, the FCA would have imposed a £7.412m fine.

WealthTek's former principal partner, John Dance, faces criminal trial at Southwark Crown Court in September 2027 for fraud and money laundering, including alleged transfers of $80m of client funds to fund a lavish lifestyle, horseracing interests and nightclubs. If you were a WealthTek client, your route is via the administrators and the FSCS where applicable. You don't need a CMC.

Claire's collapses
All 154 UK and Ireland standalone stores closed on 27th April with around 1,300 redundancies. Modella Capital appointed Kroll as administrator. The 356 concessions inside Asda and other partner retailers, and the head office, are still running. If you've got a recent purchase, gift card or faulty item, your route depends on how you paid:

• Credit card, item over £100: Section 75 of the Consumer Credit Act 1974 makes your card issuer jointly and severally liable. Open a claim with your bank.
• Debit card or item under £100: ask your bank for a chargeback under the card scheme rules. You usually have 120 days from the transaction or the date the goods should have been received.
• Faulty goods: the Consumer Rights Act 2015 still applies. You can claim against the administrator (Kroll), but you'll be at the back of the queue. Card-scheme routes are faster.
• Gift cards: if you can use them in a concession (e.g. inside Asda), do that quickly. Otherwise you become an unsecured creditor and may not see your money back.

FCA charges a banned mortgage broker (still operating after 17 years)
The FCA charged Shaun Lawrence (also known as Shaun Lawrence-Bright and Shaun Bright) with a criminal offence under section 19 of FSMA 2000. The allegation: he operated as a mortgage broker without FCA authorisation. The detail that makes this case unusual: he was banned from financial services in 2008 and is alleged to have continued for almost two decades.

First hearing at Hull Magistrates' Court on 2nd July 2026. The FCA's enforcement teams generally prefer regulatory tools over criminal charges. When they go criminal, they pick cases where the message is unambiguous.
Always check the FCA Register before signing anything mortgage-related: register.fca.org.uk. If a broker isn't on the register, walk away.

FCA opens an APR review
The FCA published a Discussion Paper on 29th April asking whether the APR is actually helping consumers compare credit products. PwC research the FCA commissioned found that when a lower APR didn't reflect cheaper overall borrowing (because of fees or longer repayment terms), fewer than 1 in 5 consumers correctly identified the cheapest loan. Most picked the loan with the lowest headline APR, even when it cost them more.

Companion Consultation Paper CP25/27 covers simplifying financial-promotion rules under the Consumer Duty. Both close on 17th June 2026.

If you've taken on a credit-card or personal-loan product in the last few years and the actual cost surprised you, request a total-cost-of-credit breakdown from your provider in writing. Cite the Consumer Duty. Save any advertising or comparison-site screenshots that highlighted only the APR.

SIM-swap fraud: three parallel complaints
Which? called out mobile networks this week for not doing enough to prevent SIM-swap fraud (where a fraudster persuades your network to port your number onto their SIM, then uses it to bypass two-factor authentication on your bank, email and crypto accounts). Losses can run into tens of thousands.
If a SIM swap has hit you, document the timeline (when the network ported your number, when you noticed, when you reported). Then run three parallel complaints, because each addresses a different liability:

1. The mobile network for negligent ID checks. Network → Ofcom.
2. The bank for losses you suffered after the swap, especially if authentication relied on SMS one-time codes. Bank → FOS.
3. Your card issuer for any card transactions during the takeover window. Section 75 (credit card, over £100) or chargeback (debit card or under £100).

Travel insurance and the Middle East
The FCDO is currently advising against all travel to Israel, Iran and Iraq, and against all but essential travel to the UAE and several other Middle East destinations. Most standard travel-insurance policies automatically exclude war and armed-conflict claims, and most don't cover cancellations caused by airline fuel surcharges or fuel shortages. MoneySavingExpert reviewed 40+ policies on 28th April and the picture is sobering.

Notable exceptions MSE found: Urban Jungle (covers fuel-shortage cancellations once you've exhausted other recovery routes), Lloyds Silver packaged bank account (£11.50/month, Europe only, 12+ hour delays), Halifax Ultimate (£19/month, worldwide, up to £5,000 cancellation), Revolut Ultra (£55/month, up to 70% of non-refundable bookings, capped at £2,500).

If your trip is at risk: read your policy first (look for war, "act of armed conflict", FCDO advisories, "known events" wording). Speak to your airline before your insurer, because if the airline cancels you owe a refund or rerouting under flight-cancellation rights. Tour operator package? ATOL/ABTA. Booked through a credit card and over £100? Section 75. Otherwise chargeback.

Wellesley & Co: FCA closes its review
The FCA published a final statement on its review of consumer complaints about Wellesley & Co Limited. The FCA upheld one complaint about the authorisation process but found this didn't cause investor losses. Around 60% of money invested has been returned to investors who held secured mini-bonds. Investors who received preference shares as part of the CVA have lost everything they put in.

The FCA's "we caused no losses" finding closes one route. Complaints aimed at the firms that sold the product (an IFA, a SIPP operator, a comparison platform) are still open. The FSCS may also pay out where there's a regulated activity loss the firm cannot cover. The CVA itself is still the primary recovery route for the underlying investments.

Recalls

• Galt Nature Craft Kit (still active recall, item 1005476): sand contaminated with asbestos. Sold via John Lewis, Hobbycraft, Toy Master, garden centres. Stop using immediately, double-bag the kit, dispose carefully or return to retailer. Asbestos is banned because it poses a health risk at any level of exposure.
• GoodHome integrated fridge-freezers (B&Q): fire risk from defective auto-defrost mechanism. Stop using, switch off, unplug. Contact B&Q.
• HiPP Organic 7+ Months Vegetable Lasagne: undeclared celery (celeriac) allergen, batch B49311 (best before 31/01/2027). Risk to celery-allergic infants. HiPP refunds direct on 0800 298 4477.
• Amarox Sertraline 100mg film-coated tablets (MHRA Class 2 recall ref EL(26)A/22, 28th April): may contain Citalopram instead. Check your packaging and speak to your pharmacist.

Scams and FCA warnings

• TV Licensing phishing email (claims direct-debit declined, originates from a Japanese .jp domain). Don't click; forward to report@phishing.gov.uk; verify at tvlicensing.co.uk.
• Child Trust Fund scam: fake letters claiming £2,200 of "missing" CTF savings. Verify via MyLostAccount.org.uk or HMRC's CTF tracing service.
• FCA unauthorised-firm warnings this week: Velocity Vector EA, Pinnacle InvestX, Amroc Trade, @Prime FX / Jay Trading, TheAceTradingEarner, Capital Traders Hub, Novariontrade, Nexalara Investment, Ava+trade, PRO TRADER, "Mortgage Advisor", and StakeTradeWay. None are FCA-authorised. The FSCS doesn't cover anything you put in. If you've already paid: chargeback (if recent and by card), report to Action Fraud.
• LCM Family Limited entered administration (FCA notice, 29th April). Live complaints route via the FSCS now.
• FCA and ERSOU operation: three people arrested in raids in Chelmsford and Romford on suspected unlawful financial promotions. Names not released.

Coming up

• 31st May 2026: motor finance complaint-handling pause lifts.
• 17th June 2026: deadline for responses to the FCA APR Discussion Paper and CP25/27.
• 19th June 2026: Data (Use and Access) Act gives every UK consumer a statutory right to complain directly to a data controller about data processing.
• 30th June 2026: motor finance lenders must start contacting affected customers under PS26/3.
• 1st July 2026: BNPL joins FOS jurisdiction. Mandatory ADR accreditation kicks in for online retailers.
• 2nd July 2026: first hearing in the FCA's criminal prosecution of Shaun Lawrence.

This article was drafted with AI assistance and reviewed by a human editor. It is general information, not legal advice for your specific situation

If you're caught in any of this, [start a free case](https://www.evenstance.com/register). Frank, our AI dispute companion, walks you through the route. We don't take a percentage.