The National Franchised Dealers Association (NFDA) is advising members to begin readiness planning ahead of any formal announcement regarding a potential lender redress scheme.
A formal announcement is expected in the coming weeks.
Sue Robinson, Chief Executive of the National Franchised Dealers Association, said: “As discussions continue around potential lender redress schemes, we are encouraging retailers to begin preparing now for the possible operational and customer impacts on their businesses.
“While further clarity is still awaited, early preparation will be important to ensure retailers can respond efficiently and maintain customer confidence should any scheme be introduced.
“Reviewing historic records, assessing operational capacity, and preparing staff and customer communications will all be key.”
The NFDA highlighted key areas for preparation. This includes reviewing and organising historic finance and transaction records and identifying gaps in older documentation.
Members are also advised to review resource required to handle information requests, review commission structures and disclosures, and prepare staff and customer communications
Robinson added: “The NFDA continues to engage with the Financial Conduct Authority and the Financial Ombudsman Service as matters progress, and we will provide further updates as more information becomes available.
“We are also liaising closely with lenders to understand their intended approach to any potential redress schemes.
“Members are strongly encouraged to seek support where needed to ensure they are well positioned ahead of any announcement.”
