Ryan Fowler, acting CEO of the Leasing Broker Federation, said:

“We welcome the FCA’s decision to consult on a redress scheme and agree that where harm has occurred, consumers should receive appropriate compensation through a process that is fair, proportionate and clearly administered.

“It’s important that this consultation reflects the variety of business models used in motor finance during the period in question.

“Many brokers have already adapted to significant regulatory changes, including the ban on discretionary commission arrangements in 2021.

“The Federation supports transparency and good customer outcomes, but it’s equally vital that any redress process provides clarity for intermediaries and avoids undue complexity or uncertainty for firms that operated within the rules at the time.

“We will continue to engage with the regulator on behalf of our members and support efforts that promote trust, compliance and a well-functioning finance market for all parties.”