Consumer Rights This Week: CMA's First Drip Pricing Fine, Renters' Rights Act Countdown, and the £7.5 Billion Motor Finance Payout

16th April 2026

It's been a landmark week for UK consumer protection. From the CMA's first major enforcement action under new powers to the countdown to historic renters' rights, here's what you need to know.

CMA Fines AA £4.2 Million for Hidden Fees

The Competition and Markets Authority has issued its first significant fine under the Digital Markets, Competition and Consumers Act. And it's a big one.

Automobile Association Developments Limited, which runs both the AA and BSM driving schools, has been fined £4.2 million and ordered to refund over £760,000 to more than 80,000 learner drivers. The offence? A mandatory £3 booking fee that wasn't included in the advertised lesson price.

This is what's known as "drip pricing": where the full cost only emerges as you go through the booking process. Under new consumer protection rules that came into force in April 2025, all mandatory charges must be shown upfront.

The CMA has also reviewed over 400 businesses across 19 sectors and opened investigations into 8 more for similar practices. If you've been caught out by hidden fees during online booking, this ruling strengthens your position to challenge them.

What this means for you: If a company adds mandatory fees after showing you an initial price, you may have grounds to complain. The CMA has made clear this practice is now unlawful.

Renters' Rights Act: Two Weeks to Go

From 1st May 2026, the Renters' Rights Act will transform the private renting landscape for 11 million tenants across England.

The headline change: no-fault evictions are abolished. Landlords will no longer be able to evict tenants using Section 21 "no reason needed" notices. Every eviction will require a valid ground.

But there's much more:

• Rent increases limited to once per year, and tenants can challenge unfair hikes
• Pet rights: landlords cannot unreasonably refuse consent for pets
• Anti-discrimination: it's now illegal to reject tenants for receiving benefits or having children
• Bidding wars banned: landlords and agents cannot invite or accept offers above the advertised rent

The government has backed councils with £59.3 million in enforcement funding. And landlords must provide tenants with a Mandatory Information Sheet by 31st May or face fines of up to £7,000.

What this means for you: If you're a private renter, your rights are about to get significantly stronger. If your landlord tries to evict you without a valid reason after 1st May, or raises your rent more than once a year, you have grounds to challenge.

Motor Finance: The £7.5 Billion Question

The FCA confirmed its motor finance consumer redress scheme (PS26/3) on 30th March, and firms are now preparing to contact affected customers.

The numbers are staggering: 12.1 million eligible agreements, an estimated £7.5 billion in total redress, and an average payout of around £829 per agreement.

If you took out car finance between April 2007 and November 2024 where commission was payable, you may be owed money. The key dates:

• Post-April 2014 agreements: Firms must start contacting customers by 30th June 2026
• Pre-April 2014 agreements: By 31st August 2026
• Complaint deadline: 31st August 2027

Importantly, the FCA has also cracked down on claims management companies (CMCs) that charge fees for submitting these claims. This week, they banned adverts from one CMC that used unauthorised Martin Lewis clips and the FCA's own logo to mislead consumers. Since January 2024, 899 misleading CMC adverts have been removed.

What this means for you: You do not need to pay a CMC. You can submit your own complaint directly to your lender, or escalate to the Financial Ombudsman Service: both completely free. If you've already been contacted by a CMC, check what fees they're charging before committing.

FOS Reform: What's Changing

HM Treasury has confirmed what it calls a "once in a generation" overhaul of the Financial Ombudsman Service:

• New compensation cap: £445,000 (up from previous limits), effective from 1st April 2026
• 10-year absolute time limit for bringing complaints
• Buy Now Pay Later complaints expected to come under FOS jurisdiction from July 2026
• Consistency reforms giving the Chief Ombudsman oversight of determination standards

Martin Lewis has warned that some changes could create a "protection gap": particularly where firms that technically follow FCA rules but deliver poor outcomes could be found to have acted fairly under the new test. We'll be watching this closely.

What to Watch Next Week

• Renters' Rights Act preparations continue: check your landlord has the Mandatory Information Sheet ready
• FCA board meeting on 16th April may signal further regulatory priorities
• CMA investigations: more businesses expected to face scrutiny under drip pricing and review suppression rules

This is a draft roundup for Dan to review before publishing. Sources verified across FCA, CMA, GOV.UK, and industry outlets.

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