Home FCA Handbook CONRED CONRED 6 CONRED 6 Annex 2 Provisional redress decision for scheme cases
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CONRED 6 Annex 2 Provisional redress decision for scheme cases

31/03/2026R

This annex belongs to CONRED 6.2.7R(1), CONRED 6.2.14R(3)(a), CONRED 6.3.20R(2)(a), CONRED 6.3.26R(2)(a), CONRED 6.4.6R(2)(a), CONRED 6.4.25R, CONRED 6.4.36R(2). 

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 6.2.19R; 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 6.2.14R(3)(a), 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) information about the evidence relied on by the lender in reaching its decision, sufficient to explain the basis of that decision and to enable the consumer to challenge it;
  7. (7) if CONRED 6.4.6R applies, an explanation of the assessment of redress for hybrid cases with minimal cost of credit and reasons for that assessment;
  8. (8) a statement that compensatory interest has been calculated to the date of the provisional redress decision and that the final amount payable will be updated to reflect the date of payment;
  9. (9) information about any tax deducted from the redress payment;
  10. (10) information about any intention by the lender to apply set-off, including an explanation that the consumer may make representations as to why set-off should not be applied;
  11. (11) 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 of this communication, as this may affect who any compensation is paid to;
  12. (12) if the lender is making an early settlement offer under CONRED 6.2.7R:
    1. (a) an explanation that the lender is making the offer without completing the remaining steps under the scheme; and
    2. (b) a statement that the lender has calculated that the offer is no less than the maximum redress that the consumer could receive under the scheme.
31/03/2026R

The communication must include the following information:

  1. (1) a statement that the consumer can accept the redress outcome immediately in full and final settlement of all claims against the lender relating to the subject matter of the scheme in respect of the case, including legal claims;
  2. (2) an explanation of how the consumer can accept the outcome and, if relevant, provide bank details or alternative payment instructions;
  3. (3) an explanation that, if the consumer disagrees with any aspect of the provisional redress decision, they must notify the lender within 1 month of the date of this communication;
  4. (4) a statement that, if the consumer does not notify the lender within 1 month that they disagree with the provisional redress decision, the lender will send a redress determination confirming the provisional redress decision; and
  5. (5) an explanation that the consumer may notify the lender within 1 month if they do not wish to have their case considered under the scheme.