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Britain's financial watchdog "likely to consult" on motor finance redress


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  Britain's Financial Conduct Authority on Tuesday said it would likely consult on an industry-wide scheme to compensate motor finance customers if the Supreme Court rules that lenders and brokers should have been more transparent about commissions.

The Financial Conduct Authority (FCA) in Britain is poised to initiate a consultation on how to address potential compensation for consumers affected by the mis-selling of car finance. This follows a significant increase in complaints related to motor finance, particularly after the FCA banned a practice known as "discretionary commission arrangements" in January 2021, which allowed car dealers to adjust interest rates for their benefit. The FCA's upcoming consultation will explore the mechanisms for redress, potentially involving a formal redress scheme or other methods to ensure consumers receive compensation for any unfair charges. This move comes in response to concerns that many consumers might have been overcharged on their car loans due to these now-banned practices.

Read the Full Reuters Article at:
[ https://www.msn.com/en-gb/money/other/britains-financial-watchdog-likely-to-consult-on-motor-finance-redress/ar-AA1AFz0u ]

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