The Financial Conduct Authority (FCA) has released research which shows consumers showing many motor finance redress want the money now instead of waiting for the legal challenges to be settled.
It said Barclays Partner Finance has confirmed it will make settlement offers to some of its customers owed compensation.
It said 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 accept an offer in line with the scheme.
The survey findings are being released today alongside the FCA’s expectations for lenders who want to make settlement offers to those owed compensation under its scheme, while legal challenges continue.
The regulator supports lenders making settlement offers, as long as customers are offered no less than they would receive through the scheme.
Stephen Braviner Roman, the FCA’s general counsel and co-lead on the motor finance project, said: ‘Fair settlement offers could result in some people getting money sooner. And it’s clear they want the choice.
‘Anyone who wants to wait can, and there’s no obligation to agree to the offer. We’ll closely monitor firms making offers and expect them to be clear what accepting an offer means.’
To help consumers make informed decisions, the FCA has published a factsheet (PDF) that lenders must share with customers when making settlement offers.
It said not all lenders are likely to make offers, and those that do may only make them to some customers owed compensation.
The FCA will regularly update its website with lenders making settlement offers to help consumers check whether an offer is genuine. Firms are expected to notify the FCA if they plan to make offers.
