Credit, Collections & Insolvency News
The Finance and Leasing Association (FLA) has criticised the Financial Conduct Authority’s (FCA) proposed redress scheme for car finance mis-selling, labelling it ‘completely impractical.’
Stephen Hadrill, Director General of the FLA has expressed concern about the scheme covering loans dating back to 2007, stating that both firms and customers may lack necessary documentation.
The FCA estimates the scheme could cost the industry between £9 billion and £18 billion, with individual compensation likely to be under £950.
Hadrill said “We have concerns about whether it is possible to have a fair redress scheme that goes back to 2007 when firms have not been required to hold such dated information, and the evidence base will be patchy at best. We will be interested to see how the FCA addresses this point in its consultation.”
