FCA redress scheme for Mis-sold Car Finance Clients
Bott and Co welcome yesterday’s announcement from the Financial Conduct Authority, which provides long-awaited clarity for millions of consumers who were mis-sold motor finance.
For years, our clients have been waiting for a fair and efficient route to redress. The FCA’s proposed industry-wide compensation scheme represents a significant step towards achieving that. It recognises the widespread failings across the motor finance sector, where dealers and lenders failed to disclose key commission arrangements and sets out a clear path to ensuring affected drivers are compensated.
David Bott, Senior Partner: ‘The true measure of success will be whether it delivers meaningful compensation that reflects the real financial harm suffered by consumers. The average payout figure of £700 per agreement raises serious questions about whether the scale of redress will match the severity of wrongdoing.’
The rules must ensure fairness, transparency, and a process that does not put the burden on individuals to navigate complex claims alone, particularly where lenders may challenge eligibility or limit payouts.
We are reviewing the FCA’s proposals in detail and will continue to act in the best interests of the thousands of clients we represent.
While there is still work to do on the finer points of the scheme, yesterday’s announcement confirms that compensation is coming.
Bott and Co will find and collate historical documents, assess your exposure, and avoid pitfalls e.g. unnecessary costs, missing deadlines. As a regulated law firm, we will aim to keep costs proportionate and transparent, avoiding overreliance on speculative litigation or claims management companies (CMC’s) firms.
Bott and Co will feedback to the FCA and we remain dedicated to achieving the best possible outcome for our mis-sold motor finance clients.