UK Now Considering a Redress Scheme for Motor Finance Saga

The UK’s Financial Conduct Authority said it’s now considering implementing a redress scheme that banks would have to follow if they discover consumers were harmed by historic practices in their motor finance businesses.

The regulator had previously hoped to introduce an alternative way of dealing with complaints tied to the saga, but it now believes such a program would be simpler for consumers looking to bring forward a complaint, according to a statement Tuesday. It would also be more orderly for banks and lenders on the receiving end of those complaints.