Under the CRA, the FCA (as a regulator and an unfair contract terms enforcer)1 does not have the power1 to grant redress to consumers who have suffered loss because of an unfair term or notice1. Consumers may choose to complain to the firm and to seek redress from it. If the firm does not satisfy the consumer's complaint, the consumer may choose to refer the complaint to the Financial Ombudsman Service, if appropriate.
If the use of an unfair term also amounts to a rule breach, and that breach causes loss to consumers, the FCA can apply to court for restitution or require restitution. The FCA will consider whether to use these powers in accordance with the policy in EG 11.
The FCA can use its powers under section 404 of the Act to make rules requiring authorised persons, electronic money issuers and payment service providers to establish and operate consumer redress schemes. The FCA can also impose a requirement on an authorised person, electronic money issuer and payment service provider under section 404F(7) of the Act to establish and operate a scheme that corresponds to, or is similar to, a consumer redress scheme under section 404 of the Act.1