Home FCA Handbook CONRED CONRED 5 CONRED 5 Annex 3 Redress determination: scheme cases
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CONRED 5 Annex 3 Redress determination: scheme cases

31/03/2026R

This annex belongs to CONRED 5.2.16R(5)(a), CONRED 5.2.16R(7), CONRED 5.3.27R(5)(a), CONRED 5.3.27R(7), CONRED 5.4.25R, CONRED 5.4.37R(5)(a), CONRED 5.4.37R(5)(b), CONRED 5.4.37R(6).

The communication must include the following information, where relevant:

  1. (1) the lender’s assessment of:
    1. (a) whether the scheme case included any of the features giving rise to an unfair relationship under CONRED 5.2.19R; and
    2. (b) whether there was an unfair relationship and the reasons for the lender’s decision;
  2. (2) if there was an unfair relationship, a statement as to whether it caused loss or damage and the reasons for the lender’s decision;
  3. (3) if there was no unfair relationship that caused loss or damage, a statement that no redress is due under the scheme;
  4. (4) if there was an unfair relationship that caused loss or damage:
    1. (a) the total amount of redress payable to the consumer as an offer in full and final settlement of all claims against the lender within the subject matter of the scheme relating to the agreement, with the amount of compensatory interest as part of that redress clearly specified; and
    2. (b) details of the calculations to determine the total amount of redress, clearly setting out the methodology used, any evidential assumptions and reconstructions relied on, the amount of compensatory interest included in these calculations and any proposed set-off for undisputed arrears or default sums;
  5. (5) if the lender determines, in accordance with CONRED 5.2.14R(3), not to proceed with the case because the consumer opted in more than 6 months after being sent the opt-in communication:
    1. (a) a statement of the date on which the consumer was sent the opt-in communication, the date of any opt-in follow-up communication, and the date by which the consumer was required to opt in to the scheme;
    2. (b) a statement that the consumer did not opt in within the period required by the scheme and that, on that basis, no redress is due under the scheme; and
    3. (c) an explanation that the time for opting in may be extended in exceptional circumstances, but that the lender does not consider any such circumstances to apply here;
  6. (6) if the consumer has formally objected to a provisional redress decision, an explanation of how the lender has considered the objection, including any evidence the consumer submitted and how any redress calculations have changed, where appropriate, from the provisional redress decision;
  7. (7) a statement that the lender will pay the amount of redress within 1 month of the date of the receipt of consumer’s acceptance by bank transfer unless the consumer provides alternative payment instructions;
  8. (8) an explanation of how the consumer can accept the offer and provide bank details or alternative payment instructions;
  9. (9) information about the evidence relied on by the lender in reaching the redress determination, sufficient to explain the basis of that determination and to enable the consumer to challenge it;
  10. (10) a statement that compensatory interest has been calculated to the date of the redress determination and that the final amount payable will be updated to reflect the date of payment;
  11. (11) information about any tax deductions made from the redress payment;
  12. (12) information about any redress amount applied by way of set-off against outstanding principal and, where appropriate, signposting to a not-for-profit debt advice body, including how the consumer may access that support, so that the consumer can consider whether they may wish to object to set-off being applied where they have priority debts;   
  13. (13) a statement that, if the consumer has been bankrupt or is in an individual voluntary arrangement, they should inform the lender and their insolvency practitioner about this communication, as this may affect who any compensation is paid to;
  14. (14) an explanation that the consumer may notify the lender if they do not wish their case to be considered further under the scheme, and of the mechanism for doing so; and
  15. (15) one of the following communication codes:
    1. (a) RD03 – no unfair relationship and no redress (no relevant arrangement, including excepted relevant arrangements);
    2. (b) RD04 – no unfair relationship and no redress (rebuttal); or
    3. (c) RD05 – redress due, calculation provided.
  16. This must be included clearly for the purposes of Financial Ombudsman Service identification.
31/03/2026R

The communication must include the following information:

  1. (1) a statement that the consumer may accept the redress outcome immediately in full and final settlement of all claims relating to the subject matter of the scheme in relation to the case, including any legal claims;
  2. (2) a reminder that the consumer has the right to complain to the Financial Ombudsman Service, even if redress is paid under the scheme. The reminder should also explain the time limits for referring the complaint to the Financial Ombudsman Service;
  3. (3) a statement that if the consumer refers the complaint to the Financial Ombudsman Service, the Financial Ombudsman Service will consider the complaint against what, in its opinion, the outcome should have been under the scheme rather than by reference to what is, in the Financial Ombudsman Service’s opinion, fair and reasonable in all the circumstances of the case; and
  4. (4) details on how to contact the Financial Ombudsman Service.