Commenting on the FCA’s announcement on the motor finance redress scheme, Peter Rothwell, Head of Banking, KPMG UK says:
“Today’s announcement gives lenders and the market greater clarity on how the motor finance redress scheme will be put into action. While the final rules reflect some changes to eligibility and redress – with estimated payouts decreasing from £8.2bn to £7.5bn – the FCA has stood firm on the main criteria and this remains a substantial exercise.
“The FCA has made the decision to implement two schemes, one covering April 2007 - March 2014 and another April 2014 - November 2024. This could help to speed up the process for some consumers, but also risks causing confusion for others.
“With an initial start date of June 30 2026, lenders must now unpick the detail and move quickly from planning to execution. As the industry works through this detail, attention will turn to whether any elements of the scheme face further scrutiny or challenge.”
