Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she has taken to ensure that the Financial Conduct Authority’s proposed motor finance consumer redress scheme is proportionate.

The Government recognises the central role of the motor finance industry in helping consumers and businesses access vehicles and in supporting the wider automotive sector. Ensuring that consumers can access motor finance on manageable and affordable terms is therefore of vital importance and the Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.

The Financial Conduct Authority (FCA), as the independent regulator, has consulted on proposals for a motor finance consumer redress scheme. Throughout the consultation period, which closed on December 12, the Government encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March.