Benjamin Fellows

SRA warning on the conduct of mass financial mis-selling claims: what will be the impact on motor finance claims?

In September 2024, the Financial Conduct Authority (FCA) is due to report on its review of motor finance Discretionary Interest Commission arrangements (DICs). The report may lead to a redress scheme on a level with that seen previously for managing Payment Protection Insurance (PPI) claims. Given the FCA intervention and campaigns from consumer groups, financial institutions are preparing for an inevitable surge in consumer claims, which are expected to allege unfair relationships arising from non-disclosure of commission in a DIC arrangement.