The FCA’s proposed motor finance redress scheme has landed, and with it, a hefty price tag. The regulator estimates £8.2 billion in compensation for customers, plus an additional £2.8 billion in implementation costs, bringing the total industry bill to around £11 billion. The Finance & Leasing Association (FLA) isn’t convinced. Chief executive Shanika Amarasekara said the figures “remain too high” with the FLA's Adrian Dally also calling for transparency on how the FCA arrived at them. The consultation do ...

The UK's Financial Conduct Authority (FCA) has put forward a proposal for a compensation scheme under which payouts related to an anticipated 14 million unfair motor finance agreements may commence next year. This scheme, if approved, is set to disburse an estimated £8.2bn ($11bn) to consumers who were disadvantaged by nondisclosure of critical information in their finance agreements. The reported lack of transparency has prompted FCA to suggest average payouts of about £700 per affected agreement. Rese ...

The Finance & Leasing Association (FLA) has urged caution following the Financial Conduct Authority’s (FCA) publication of its long-awaited consultation on a sector-wide redress scheme for motor finance customers, warning that the costs “remain too high” and that the detail will require “much scrutiny” before firms can assess the full operational and financial impact. The 360-page consultation sets out how the regulator proposes to deliver compensation for consumers who were charged unfairly under commiss ...

Vehicle Asset Solutions (VAS) and jaam automation have introduced an AI-powered Attestation and Audit Portal, aimed at enhancing oversight within the UK motor finance industry. Designed to facilitate compliance and reduce administrative tasks, the portal is now accessible to finance providers throughout the UK. It utilises AI to offer a standardised oversight process, assisting funders in maintaining “consistent, scalable and regulator-aligned” reviews. The platform also aims to reduce the repetitive ...