Motor Finance Redress and Solicitor Responsibilities

Understanding the Claims Landscape

Paul Crowther: Welcome back to Compliance Pods for Legal Professionals, and just a reminder that the content of this podcast is for general information purposes only and does not constitute legal advice. So Buckle up. Because Here. We. Go.

Andre Grayson 2: Hi everyone, it's me, Andre Grayson with Paul Crowther. Paul, how are you doing today?

Paul Crowther: I’m good, thanks Andre! I’ve had my coffee, I’ve survived another week of compliance queries, and I’m ready for our motor finance claims discussion. Which, let’s be honest, is a bit less exciting than my weekend paragliding, but probably safer.

Andre Grayson 2: Ha! Well, safer for some, but not for the firms who aren’t keeping up with the SRA’s latest guidance. So, let’s set the scene. The SRA’s just put out some guidance on claims management, especially around car finance and compensation schemes. And it’s not just about what’s happening now—there’s a lot of anticipation about what could be coming down the line, right?

Paul Crowther: Absolutely. The big thing everyone’s watching is the Supreme Court’s upcoming decision on motor finance commission. The FCA’s already said that if the Court finds widespread failings, they’ll probably consult on an industry-wide redress scheme. So, we’re in this sort of holding pattern, but it’s not a time to just sit back and wait.

Andre Grayson 2: Exactly. And the SRA’s guidance is really clear that, as solicitors, we need to be thinking ahead. That means not just focusing on the claims we’re running now, but also preparing for the possibility of a new compensation scheme. And, you know, this isn’t just about motor finance—there are already areas where clients can access redress schemes for free, or get funding for legal advice. So, it’s about knowing the landscape and making sure clients know their options.

Paul Crowther: Yeah, and I think it’s easy to forget that these things can move quickly. One minute you’re advising a client on the current process, and the next, there’s a new scheme or a new deadline. I mean, we’ve seen it before in other areas—PPI, for example. The key is to stay agile and keep your ear to the ground. And, Andre, as we’ve talked about in previous episodes, it’s not just about ticking boxes for compliance—it’s about genuinely helping clients navigate what can be a really confusing system.

Andre Grayson 2: Right, and that’s a good point. The SRA’s guidance isn’t just a checklist. It’s about making sure we’re always acting in the client’s best interests, especially as things evolve. And with the Supreme Court decision looming, firms need to be ready to adapt—both in terms of their advice and their processes.

Communicating with Clients in Uncertain Times

Paul Crowther: So, let’s talk about communication, because this is where things can get a bit tricky. The SRA says we need to be upfront with clients about all the possible roots for their claims—not just the ones that involve us as solicitors. That means telling them about ombudsmen, public compensation schemes, and even the possibility of future schemes that haven’t been set up yet.

Andre Grayson 2: Yeah, and it’s not always the easiest conversation to have, is it? The lesson I've learned over the may many many years I've been in practice is that honesty and clarity go a long way, even if you don’t have all the answers yet.

Paul Crowther: That’s so true. And sometimes, clients are surprised to hear that they can approach some of these schemes directly, without needing a solicitor—or paying for one. But it’s the solicitor's job to make sure clients understand all their options, even if it means they might decide not to instruct you. It’s about trust, isn’t it?

Andre Grayson 2: Absolutely. And, you know, the SRA’s guidance is really clear on this point. During the pre-contract stage, we have to make sure clients know about any ombudsman or public compensation scheme that’s relevant, and that they can go to those schemes directly. It’s not just a nice-to-have—it’s a regulatory expectation. And with the FCA hinting at possible new schemes for motor finance, we need to be ready to have those conversations, even if the details aren’t finalised yet.

Paul Crowther: And I think, Andre, that’s where a bit of empathy comes in. Clients are looking to us for guidance, but they’re also looking for reassurance. So, being upfront about what we know, what we don’t know, and what might change—that’s what builds confidence. And, as we’ve said before, it’s better to over-communicate than to leave clients in the dark, especially when the landscape is shifting.

Practical Compliance and Best Interests

Andre Grayson 2: So, let’s bring it back to compliance and best interests. The SRA’s guidance really puts acting in the client’s best interests at the centre of all this. That means not just following the rules, but thinking about what’s genuinely best for the client as things change. And with the FCA extending deadlines for motor finance complaints, there’s a bit more breathing room—but also more uncertainty.

Paul Crowther: Yeah, and that’s where firms can get caught out.

Andre Grayson 2: You're right , and be proactive—rather than reactive. It will save a lot of headaches down the line. Even if a new redress scheme isn’t confirmed yet, it’s worth thinking about how you’ll update clients, what information you’ll need to share, and how you’ll make sure everyone’s on the same page. It’s all about preparation and putting the client first.

Paul Crowther: And, you know, as we’ve said in previous episodes, compliance isn’t just about avoiding trouble with the regulator. It’s about building trust, managing expectations, and making sure clients feel supported—even when things are uncertain. That’s what keeps people coming back to regulated law firms, and it’s what sets good firms apart from the others.

Andre Grayson 2: Couldn’t agree more. So, that’s all for today’s episode on motor finance redress and solicitor responsibilities. We’ll keep you updated as the Supreme Court decision comes out and the FCA moves forward. Paul, always a pleasure chatting with you.

Paul Crowther: Likewise, Andre. And thanks to everyone for listening. Stay compliant, stay safe, and we’ll see you next time.