The Financial Conduct Authority (FCA) has issued a warning following reports of scammers posing as motor finance lenders and offering non-existent compensation to consumers.
While the FCA has announced its intention to consult on a motor finance redress scheme, no consultation has yet taken place and no scheme is currently in place. Despite this, fraudsters are contacting consumers to request personal details such as names, addresses, dates of birth and banking information.
The FCA has asked the BVRLA to highlight its consumer messaging:
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No compensation scheme exists at present.
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Motor finance lenders are not contacting customers about compensation.
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If contacted by someone claiming to offer compensation, consumers should hang up immediately.
Members who may be engaging with customers on related complaints or enquiries are encouraged to make them aware of this guidance.
The FCA has also reminded consumers of the resources available to help protect themselves from scams, including:
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Its dedicated scam awareness pages.
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Ofcom’s reporting services for scam calls.
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Guidance on reporting scam texts and mobile calls by forwarding them to 7726 (free of charge).
More information is available via the FCA website and Ofcom’s scam advice pages.
