FCA clarifies redress scheme details

The FCA has updated its website with a document giving more detail on several aspects of the motor finance commission redress scheme. The document runs to 20 pages and covers:

• the scope of the scheme, including the effects of the complaints cause, the definition of “motor vehicle” and the position of successors to original lenders;
• the FOS – including what happens with complaints with the FOS before 31 March and its charging arrangements;
• application of exceptions – for example where a DCA existed but was not used;
• how lenders and brokers should be working together and cases where there are multiple representatives;
• consumer communications and scheme steps and timing;
• liability, including agreement start dates, the “no better deal” rebuttal, the “non operative tied agent” rebuttal, and redress determination for periods where no interest was charged;
• redress calculations, early settlement, redress caps, post-termination recoveries, “debit backs”, payment schedules, set offs and shortfalls; and
• supervision and reporting including managing adequate financial resources.