Regulator is asked to probe conduct of Motability Operations and its insurer over Drive Smart distress

A financial regulator has been asked to investigate the conduct of the two companies responsible for Motability’s controversial Drive Smart programme, which caused panic and distress among many disabled customers before it was paused earlier this year.

In May, Motability Operations suspended the programme following widespread concerns from customers about how it was impacting their lives.

But one of its disabled customers has now submitted evidence to the Financial Conduct Authority (FCA) about the way Motability Operations and Direct Line Motability, the insurer behind the scheme, have treated some of their disabled customers.

Phil Swindin, a long-term Motability customer and a data protection expert who has worked for years in technology and financial services, has supported four fellow Motability customers with complaints.

Two have led to him submitting complaints to the Financial Ombudsman Service, while a third complaint to the ombudsman is being prepared, and the fourth case has been resolved with Motability Operations.

The core of his concerns is that although Motability Operations “paused” Drive Smart, this suspension did not stop harm being caused to its customers because enforcement of the programme continued.

In three of the cases, the customer was unaware that they needed to join Drive Smart, which led to named drivers being removed from the insurance policy without their knowledge, before Motability Operations – the company which runs the scheme – terminated their lease because they had been driving the vehicle without insurance.

The fourth case concerns the accuracy of the Drive Smart technology.

The four cases all led to two- or four-year bans from the Motability scheme.

Swindin has told FCA that he believes the four cases – three of which were passed to him by Disability News Service – are just “the tip of the iceberg”.

He says his casework on the four cases has provided corroboration for “numerous and consistent” online accounts of “silent driver removals, cancellations they say they were never told about, contested telematics scores, vehicles lost, and being passed between the operator and the insurer”.

He believes this shows a “systemic” issue with how Motability Operations and Direct Line Motability have treated many disabled customers.

He has set up the consumer advocacy campaign Disabled Driver Voice to provide free support to Motability scheme customers who have been unfairly treated through Drive Smart.

Swindin told FCA: “Over recent months I watched many disabled people report the same experiences publicly on social media: silent removals, cancellations they were never told about, cars taken.

“What struck me was not just the pattern but the distress.

“I saw genuinely upset, worried, panicked people, vulnerable by definition, who did not know where to turn.”

He said the consequences of these actions have included cancelled hospital appointments, customers left unable to leave their homes, and family members being forced to liquidate their own savings and pensions to secure a replacement vehicle outside the Motability scheme.

He is now asking FCA to review whether the conduct of both companies is consistent with their legal duties to consumers, and to review the behaviour of both organisations in connection with Drive Smart driver removals, insurance cancellations, lease terminations, and bans from the Motability scheme from October 2025.

Asked about Swindin’s submission this week, FCA said that it uses such information in its supervisory work and takes appropriate action where necessary, but for legal and policy reasons it cannot provide details of any action it might take based on the information.

An FCA spokesperson said: “We recognise the serious concerns raised and the impact that issues with services like this can have on disabled customers and their families.

“We expect firms to deliver good outcomes for their customers.

“They must treat them fairly, communicate clearly and provide the right support, particularly for those in vulnerable circumstances.

“Anyone who is unhappy with the service they receive should complain.

“If they are dissatisfied with the firm’s response, they should refer their complaint to the Financial Ombudsman Service.”

A spokesperson for Motability Operations said: “Comprehensive insurance is included for every Motability scheme customer and is essential to keeping disabled people on the road.

“Drive Smart was introduced for groups with higher claims rates to encourage safer driving and help manage rising insurance costs for all customers.

“It was designed to assess how someone actually drives using established technology, rather than relying on the indirect measures of risk that other drivers experience.

“We recognise that we did not introduce the programme in the right way and the experience for customers wasn’t where it needed to be which is why we paused Drive Smart.

“We are working with customers to understand what needs to improve before any further steps are taken with Drive Smart.

“Individual concerns from customers are investigated against a consistent framework, and any learnings from these investigations are informing our review.

“We will continue to engage constructively with our regulators and fully cooperate with any requests for information we may receive.”

A spokesperson for Direct Line Motability, part of Aviva, said: “The telematics data used as part of the Drive Smart programme was collected and owned by Motability Operations (MO).

“Decisions relating to the Drive Smart programme, both historic and current, sit with MO, and we are therefore unable to comment on those decisions.

“While we cannot comment on individual customer cases, we take our obligations to customers seriously and are committed to treating all customers fairly, including disabled customers.”

*Drive Smart uses a small device fitted to the windscreen and an associated mobile phone app – or a black box fitted inside the vehicle for those who cannot use the app – to measure how well the vehicle is being driven, how far, and how often, and to analyse journey patterns

**Motability Foundation, the charity that oversees the Motability scheme, is a Disability News Service subscriber