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The Financial Conduct Authority (FCA) has published feedback on firms' preparations for the Motor Finance Redress Scheme, including how lenders should collaborate with brokers and other third parties where historic data is needed.
The FCA reviewed implementation plans submitted by firms within scope of the scheme to assess their readiness to deliver fair, consistent and timely outcomes. The feedback does not introduce new scheme rules, and the redress scheme remains partly suspended following legal challenges.
Among the areas covered are operational readiness, identifying customers and agreements within scope, and approaches to group-based decision-making. The FCA also highlights the importance of early engagement with brokers and other third parties where historic information may be required.
For BVRLA members, this means brokers and other firms could receive requests for historic agreement or customer information to support redress decisions. Members should understand what records they hold, whether information can be retrieved and relied upon, and how it can be shared securely. The FCA states that decisions on whether to seek or use broker evidence should not be based solely on cost or operational convenience.
Members should continue preparing for and complying with elements of the redress scheme that have not been suspended and consider whether the FCA's feedback requires any changes to their own preparations.
Read the FCA feedback on motor finance redress scheme implementation plans.
Members with questions or practical concerns can contact James Vickery via [email protected].
