What happened?
The FCA’s motor finance redress consultation sets out clear expectations on how firms should identify affected customers, calculate redress and manage remediation efficiently.
TCC Group’s Chief Product and Commercial Officer, Garry Evans, and Momenta’s Head of Operations, Mike Morris, discussed what the consultation means for firms in a recent session.
Why does it matter?
The FCA has clarified which agreements are in scope, how redress should be calculated and the expected delivery timelines, with a stronger emphasis on governance and transparency alongside accurate calculations.
Firms can no longer rely on broad, generic frameworks; many are also working with incomplete historical data, inconsistent workflows and gaps in cross-team collaboration that the consultation brings into focus.
Who is affected?
Motor finance lenders and brokers with regulated agreements potentially in scope of redress, and the compliance, operations and IT teams responsible for auditing records and delivering remediation.
Key risks
- Incomplete historical data and inconsistent workflows across teams.
- Generic compliance frameworks that don’t hold up against the consultation’s specific requirements.
- Weak governance and oversight undermining consistency and accuracy in redress calculations.
Actions to take
- Identify agreements in scope by reviewing all regulated motor finance agreements to determine which customers may be entitled to redress.
- Design remediation processes that balance operational efficiency with accuracy in calculating and delivering redress.
- Implement robust governance and oversight, with clear roles and responsibilities to maintain transparency throughout the process.
Wider implications
Firms that act early and understand the detail of the consultation can embed a culture of compliance while keeping customer outcomes at the forefront, strengthening their standing with the regulator.
Recommendations
Firms can either work with TCC’s experts to guide compliance and remediation, or use its purpose-built technology, already processing over one million cases, to handle data analysis, document review, redress calculation and customer contact.
Supporting sources
Frequently asked questions
What does the FCA's motor finance redress consultation cover?
It sets out how firms should identify affected customers, calculate redress and manage remediation, with clear timelines and expectations on governance.
What are the first steps firms should take?
Review all regulated agreements to identify customers who may be entitled to redress, then design remediation processes and governance structures to support delivery.
Can technology help with motor finance redress?
Yes, purpose-built technology can support data analysis, document review, redress calculation and customer contact alongside expert advisory input.
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- Lending & Consumer CreditTCC helps consumer credit firms evidence good outcomes, strengthen affordability and vulnerability frameworks, and manage complaints, remediation and regulatory risk. We support lenders with practical, regulator-ready compliance programmes that improve governance, customer treatment and operational resilience.
- Motor FinanceTCC helps motor finance lenders, brokers and providers assess redress exposure, prepare for large-scale customer reviews and strengthen complaints, affordability and Consumer Duty frameworks. We combine regulatory advisory, managed operations, specialist resource and technology-enabled assurance to deliver consistent customer outcomes, robust governance and regulator-ready evidence under heightened FCA scrutiny.