FCA's Decisive Move on Motor Finance Claims Looms

The Financial Conduct Authority (FCA) plans to announce whether it will consult on a redress scheme for motor finance claims. This follows a Supreme Court decision affecting car finance commissions, alleviating banks' concerns about potential redress costs.

The Financial Conduct Authority (FCA) is on the brink of a significant announcement that could impact the motor finance sector. The British regulator has revealed it will declare before markets open on Monday whether it intends to consult on a redress scheme for motor finance claims.

This development follows a pivotal Supreme Court decision that overturned a previous ruling on car finance commissions. The court's decision is anticipated to alleviate the banking sector's apprehensions regarding the financial implications of a potential redress scheme.

The outcome of the FCA's decision could considerably influence the handling of consumer claims within the motor finance industry, marking a crucial moment for stakeholders awaiting direction.

(With inputs from agencies.)