The proposed motor finance redress scheme is being described as the largest consumer remediation programme since PPI.
An estimated 14+ million agreements may be within scope. Typical compensation is expected to be calculated on a standardised basis. Consumers who have already complained may be included automatically once the scheme launches
From a consumer perspective, the scheme has been framed as simple. For lenders, it is anything but!
This is not a spike in complaint volumes. It is a full-scale operating model stress test.
On the surface, the scheme appears administratively straightforward:
But beneath that structure sits complexity that will challenge even well-run institutions:
Industry-wide processing costs alone are expected to reach into the billions. The firms that underestimate the operational burden will find cost and conduct risk escalating quickly.
Historically, large-scale remediation programmes have been delivered through rapid hiring and manual file review.
That model worked, just about, in slower, less transparent regulatory environments. This environment is different.
The motor finance scheme will run in parallel with:
A staffing-heavy response will likely create:
In a high-visibility scheme, those weaknesses become reputational events. The real risk is not just operational failure; it is loss of control.
Many lenders are currently asking: “How much additional resource will we need?” The more important question is: “How do we maintain control at an industrial scale?”
Control means:
In other words, this is not about claims handling. It is about designing a remediation operating model that is:
The institutions that approach this as an operating model redesign exercise rather than a temporary programme will be in a materially stronger position.
Remediation programmes are often seen purely as cost centres, which is understandable. But they also provide a rare opportunity to demonstrate conduct leadership.
A well-executed programme can:
Handled poorly, the scheme will erode margin and confidence. Handled well, it becomes proof of operational maturity.
The difference lies in architecture and not headcount!
An effective response to motor finance redress requires:
The institutions that industrialise intelligently now will avoid reactive firefighting later.
At Brighter Consultancy, we bring together specialist remediation expertise and proven digital platforms to deliver a fully managed, end-to-end remediation solution. Our approach combines automated eligibility assessment, redress calculation, intelligent document processing, digital customer journeys, workflow orchestration, integrated identity and fraud controls, and FCA-ready reporting. This is all underpinned by strong governance and oversight.
We integrate people, process and technology into a controlled operating model that scales efficiently while maintaining regulatory confidence and customer trust. If you are preparing for motor finance redress and want to move beyond a reactive, staffing-heavy claims response, now is the time to define a technology-enabled operating strategy.
Contact Brighter Consultancy to discuss how to build a remediation model that protects capital, customers and reputation, not just capacity.