Related topic: Redress

The FLA has submitted its consultation response on FCA’s motor finance redress scheme, calling for a "fair, targeted and workable solution".

Work and Pensions Secretary says new evidence has been discovered that was not shown when deciding whether the group were due compensation.

However, people are now expected to receive around £700 on average, below the initial estimate of £950.

Two CMCs have agreed to change their exit fee policies and two others have agreed not to take on clients until they’re able to show they comply with FCA rules.

Among those who have already made a claim, 46% did so using a claims management company or law firm.

Compensation, where it is due, can start to be paid next year. 

The FCA says the reforms will prevent compensation delays and provide predictability needed for innovation.

The FCA may also consult separately on changes to its rules.