Commenting on the Financial Conduct Authority (FCA) plans and consultation for a motor finance redress scheme, Matthew Maxwell Scott, Executive Director of the Association of Consumer Support Organisations (ACSO), whose members support people making financial and other claims, said:
"The FCA's proposals should help ensure millions of people who were mis-sold motor finance to receive compensation, but it's important that the consultation is given proper scrutiny as the numbers involved seem to be moving ever lower.
"No doubt there will still be push back from the lenders who have misbehaved, but they knew what they were doing and there has to be a deterrent to guard against future scandals.
"Given that the consultation document itself is 360 pages long, it would be wrong to suggest that this is in any way a straightforward matter, and so it is little wonder that many people have already chosen - and may continue to choose - professional support in making a claim.
"This raises concerns about the FCA's attitude towards law firms and in particular towards the claims management companies it regulates. We wholeheartedly support any efforts to root out malpractice when it comes to consumer protections around appropriate advertising and pricing, including exit fees. However, the regulators need to acknowledge that there are many well-managed law firms and CMCs who act in line with their duties to the consumer and offer people a genuine choice if they don't feel comfortable going it alone, which, as with other redress schemes, is often the case."