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  1. Point in time
    2019-08-01

CONRED 2.6 Consumer redress scheme: paying redress

CONRED 2.6.1R

A firm must pay the redress determined to be payable to a consumer, calculated in accordance with the requirement in section 10 of the instructions at CONRED 2 Annex 13 :

  1. (1)

    within 28 days of receiving a claim from the consumer for the redress determined to be payable, following the issue of the redress determination; and

  2. (2)

    in accordance with the instructions set out by the consumer in his response to the redress determination in which he makes the claim

but a firm need not pay redress where the consumer did not send a claim for it within six months of the date of the redress determination, unless the consumer's failure to comply with that time limit was as a result of exceptional circumstances, except where the consumer refers a complaint in respect of the redress determination to the Financial Ombudsman Service within the time limits provided in DISP 2.8.2 R (or DISP 2.8.2R (3) applies).

CONRED 2.6.2R
  1. (1)

    Simple interest is payable on the redress determined to be payable from the end of the 28-day period referred to in CONRED 2.6.1R (1) until the date of payment, at a rate of 8% per annum.

  2. (2)

    After the expiry of 28 days following the consumer's claim for the redress, the redress, including interest, may be recovered as a debt due to the consumer and, in particular, may:

    1. (a)

      if a county court so orders in England and Wales, be recovered by execution issued from the county court (or otherwise) as if it were payable under an order of that court; or

    2. (b)

      be enforced in Northern Ireland as a money judgment under the Judgments Enforcement (Northern Ireland) Order 1981; or

    3. (c)

      be enforced in Scotland by the sheriff, as if it were a judgment or order of the sheriff and whether or not the sheriff could himself have granted such judgment or order.

[Note: This rule is imposed by the FCA using the powers granted to it under section 404A(1)(m) of the Act to make rules providing for the enforcement of any redress under a consumer redress scheme.]

CONRED 2.6.3G
  1. (1)

    An example of exceptional circumstances in CONRED 2.6.1 R might be where the consumer has been or is incapacitated.

  2. (2)

    In considering whether circumstances are exceptional, firms may wish to have regard to the guidance on exceptional circumstances justifying the extension of the time limits, in the online technical resource titled "the six-month time limit" on the website of the Financial Ombudsman Service.