Preparing for CP25/27: What lenders must do now

The Financial Conduct Authority’s Consultation Paper CP25/27 proposes an industry-wide redress scheme for UK motor finance customers who may have been unfairly charged due to inadequate disclosure of commission arrangements between lenders and brokers. Covering agreements from 6 April 2007 to 1 November 2024, the scheme targets practices such as Discretionary Commission Arrangements (DCAs) and high or exclusive commissions that may have breached FCA principles. It is expected that the compensation scheme ...