FCA sets expectations for firms making car finance settlement offers
By FCA
AI summary of the source article
The FCA has outlined expectations for lenders making voluntary car finance settlement offers while its compensation scheme remains partially suspended. Offers must be at least equal to scheme payouts, as Barclays Partner Finance confirms plans to offer settlements.
Why it matters
According to Stephen Braviner Roman, FCA general counsel and co-lead on the motor finance project, "Fair settlement offers could result in some people getting money sooner. And it’s clear they want the choice."
Key facts
- The FCA permits early settlement offers provided customers receive no less than they would through the regulatory scheme.
- Barclays Partner Finance confirmed it will make settlement offers to some customers owed compensation.
- The motor finance compensation scheme is partially suspended pending legal challenges set to be heard between 16 February and 3 March 2027.
Source excerpt · FCA
Research shows consumers want the choice, rather than wait for the legal challenges to conclude. Almost 9 out of 10 (89%) car finance customers who have complained or are considering doing so want the choice of an offer of compensation now, rather than waiting for the legal challenges to the FCA's compensation scheme to conclude. 86% would be comfortable making the decision, and 61% say they’d acc…