FCA publishes its redress scheme for the motor finance sector
Commenting on the publication of the Financial Conduct Authority’s redress scheme for the motor finance sector, (FCA) Shanika Amarasekara, chief executive of the Finance & Leasing Association, said: “What we wanted to see was a responsible, workable announcement that genuinely draws a line under the commissions issue, restores regulatory certainty, and protects the future investability of the sector so that competitively priced motor finance remains available for customers in the years ahead.
“While the FCA has clearly endeavoured to make the redress scheme more proportionate than the proposed scheme consulted on in October, it will take time for us to assess the market impact of the measures announced today.
“We have always been clear that where consumers suffered loss, redress must be paid. But any redress scheme for a market of this size must accurately identify and compensate only those customers who genuinely suffered loss. If it is drawn too broadly so that it also compensates customers who suffered no loss, the only real winners will be Claimant Law Firms and Claims Management Companies – and that cannot be the regulator’s intention considering that it has today had to launch a multi-organisational taskforce in an attempt to address the conduct of claimant firms operating in the motor finance market.”