CONRED 2.6 Consumer redress scheme: paying redress

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).

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.]