Need some legal analysis on that pesky hidden commissions issue?
This is from Brian Nimmo, Head of Redress at leading independent financial services consultancy Broadstone;
He said: “This ruling is a partial win for a motor finance industry which will be breathing a huge sigh of relief.
“However, providers are not out of the woods yet as DCA cases will now need to be looked at on a case-by-case basis. The FCA is expected to develop its redress scheme to deal with this development but how it will help them decide if a case is ‘unfair’ is the great unknown.
“As a result, finance companies will still need to review all of their DCA cases, assess whether they are unfair and then calculate potential redress, which will be a significant exercise.
“Broadstone has been preparing its models to help lenders and now that we know it is likely that the FCA will introduce a redress scheme, we await to see its consultation on how this will be structured.”
Be the first to comment