The FCA has published Policy Statement PS26/3, outlining the industry-wide redress scheme for motor finance customers.
With an estimated 12.1 million agreements eligible for review, firms face a significant operational challenge. A successful response depends not just on systems, but on the competence, empathy, and consistency of the people delivering the scheme.
Under the rules, senior managers must personally attest to the oversight and delivery of the scheme. This puts the spotlight firmly on how staff are trained, monitored, and supported to ensure fair outcomes for every consumer.
FCA Focus Areas | Staff Competence
The FCA’s expectations for this scheme are rooted in the Consumer Duty, specifically focusing on consumer understanding and support.
Key areas of regulatory focus include:
- Consistency of Outcomes: Ensuring that consumers in similar financial situations receive identical treatment and redress calculations.
- Consumer Understanding: Communications must be tailored to the recipient’s needs, avoiding jargon and ensuring they are equipped to make informed decisions.
- Vulnerability and Support: Staff must be able to identify characteristics of vulnerability and adapt their one-to-one interactions accordingly.
- Rigorous Oversight: Firms must monitor and report on compliance regularly. The FCA has issued a clear warning that it will intervene – using enforcement powers if necessary – where firms fail to meet standards.
- Financial Crime Prevention: While processing redress, firms must maintain robust defences against fraud and financial crime.
Core areas we can support include:
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Speed-to-Competence: Rapidly improve speed-to-competence for existing customer-facing staff and new hires to support the delivery of the scheme.
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Technical Competence: Improve the technical competence of claims handlers and complaints teams.
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Vulnerability Embedding: Equip staff with the knowledge and competence to identify and support vulnerable customers, in line with existing Consumer Duty expectations.
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Communication Clarity: Improve consistency and accuracy in one-to-one interactions, ensuring consumers understand their outcomes and feel fully supported.
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Operational Governance: Provide robust evidence of staff competence for Senior Manager attestations and regulatory reporting.
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Fraud & Risk Mitigation: Integrate financial crime awareness into redress training to protect the firm from opportunistic or fraudulent claims.
Want to find out more?
If you are an existing customer, or if you are interested in finding out more about how we can support your redress programme, please get in touch.