The Consumer Credit sourcebook (CONC) is a set of rules and guidelines established by the Financial Conduct Authority (FCA), which oversees financial services in the UK. CONC focuses specifically on how companies providing consumer credit must behave ethically and fairly towards customers, including motorists who take out loans or finance agreements for vehicles.
For example, when you sign up for a car finance deal from an authorised lender, that company is legally required to follow the rules set out in CONC. This means they have to be transparent about their charges and interest rates, explain your rights clearly, and ensure that any credit agreement suits your financial situation without causing you undue hardship.
CONC matters because it protects consumers from unfair practices such as hidden fees, misleading terms, or overly aggressive sales tactics. It ensures that when you enter into a finance agreement for your car, the lender treats you fairly throughout the process and during any potential disputes.
The Consumer Credit Act 1974 and subsequent amendments provide the legal basis for CONC, giving the FCA authority to enforce these rules.
A practical tip is to always ask questions if something about your finance deal seems unclear or unfair. Make sure you understand all aspects of your agreement before signing on the dotted line. If you feel a lender has breached CONC guidelines, you can report them to the Financial Ombudsman Service for further investigation and resolution.
How This Relates to the FCA Redress Scheme
The FCA motor finance redress scheme covers 12.1 million agreements with an average compensation of £829 per agreement. The total cost to firms is £9.1 billion. If you had PCP or HP finance between 6 April 2007 and 1 November 2024, you may be eligible. The final deadline to complain is 31 August 2027. You do not need a claims management company.