Three Weeks On: From London to Detroit — The FCA’s Race for Motor Finance Redress
- Dan Richards
- 7 days ago
- 3 min read
Clocks have gone back, but the countdown to the FCA’s Motor Finance Consultation is accelerating fast. Three weeks in, and three weeks before submissions close, the discussion has shifted from what the FCA intends to how the industry can possibly deliver it.
And now, the story has gone global. Reports this weekend confirm that FCA Chief Executive Nikhil Rathi is fluing to Detroit to meet automotive manufacturers and finance leaders — a reminder that this isn’t just a UK regulatory debate, but one with international reach and real financial stakes.
The FCA’s proposed redress scheme touches the captives of global car brands as much as domestic banks. It’s a complex ecosystem of lenders, brokers, and dealers — and the regulator is determined to keep all the wheels turning in sync.
From consultation to negotiation
When the FCA published CP25/27, it was pitched as a “necessary acceleration” — six weeks to design the UK’s largest redress scheme since PPI. The logic was understandable: consumers have waited, and the regulator wants speed. But three weeks on, the industry has discovered that speed comes at a cost.
The volume of detail, the data depth required, and the scale of the operational lift are becoming clearer. Lenders are crunching 17 years of data, brokers are digging through archives for commission records, and firms of every size are realising that the real challenge isn’t principle — it’s practicality.
The conversation has evolved. This is no longer a consultation — it’s a negotiation: between urgency and feasibility, fairness and delivery, ambition and accountability.
Why Detroit matters
Rathi’s Detroit trip says more than any press release could. Nearly half of the FCA’s projected redress cost sits with captive finance arms of global carmakers — many headquartered in the US and Europe. Without their engagement, implementation risks losing traction before it starts.
It’s also a signal to markets and governments alike: the FCA wants international credibility and cooperation, not confrontation .If Detroit represents the global side of the discussion, the real test at home will be how the regulator balances decisiveness with realism when the consultation closes in mid-November.
The industry mood: readiness with realism
Across the sector, tone is shifting from resistance to readiness. Firms know that redress is coming — but they want a framework that can actually be delivered at scale, not one that collapses under its own complexity.
The focus has turned to the practical:
How to rebuild missing data from 2007 onwards.
How to engage brokers and dealers who may no longer exist or hold records.
How to calculate hybrid remedies quickly, accurately, and defensibly.
How to evidence governance and sign-off through the Senior Managers Regime.
Boards are already discussing who carries accountability. The FCA has made clear that attestations, forecasts, and monthly reporting will follow. For lenders, this means the era of passive compliance is over — evidence of control will matter as much as compliance itself.
The operational reality
Even with clarity on rules, the FCA’s implied 12–18-month timetable is ambitious. The regulator may be aiming for a sprint, but most firms know this will feel more like an endurance race — one requiring stable systems, clear governance, and experienced hands at the wheel.
The most forward-thinking lenders are already running mock “day-one” readiness drills — testing data pipelines, designing redress calculators, and creating digital communication journeys that can scale.
The message is simple: you can’t build this once the flag drops. Redress delivery will demand automation, coordination, and confidence in every assumption — from data logic to customer correspondence.
3 weeks on — the view ahead
A month into consultation, the mood is more measured, the stakes clearer. The FCA’s visit to Detroit shows that momentum is still building, but so is recognition that cooperation and realism are vital to avoid gridlock.
At Profexx, our focus remains where it always has been: turning regulation into readiness. We’re helping firms stress-test their data, validate their calculations, and design flexible, tech-enabled operating models that can deliver at speed — without compromising control.
Because while the regulator may be racing against time, firms need to be racing towards capability. And sometimes, in redress as on the road, slowing down just enough is the only way to reach the finish line safely.
Dan Richards
CEO | Profexx Partners
Remediation. Reimagined.
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