Motor Finance Remediation

Five critical steps To motor finance customer remediation

4-5

Introduction

6-7

How we help and common customer challenges

8-9

Why choose Version 1

10-23

The 5 critical data remediation framework steps

24-25

Monitoring and reporting

26-27

Our experience working with third parties and remediation services benefits

30-31

Our remediation accelerators

32-33

Customer success stories

34-35

Complimentary consultancy session

36-37

More resources

2

Our Author Laura Walker Delivery Principal, Banking

3

Introduction Customer remediation has taken centre stage following the FCA’s October 2025 update, with an estimated £8.2 billion in compensation poised to be repaid to consumers.

In response to this, our ebook will explore the following; •

motor finance sector, the potential repercussions of non-compliance and how it can impact your organisation •

Individuals who arranged a motor finance

The five critical data remediation framework steps to undertake, fast track delivery with

agreement between April 2007 and November

remediation accelerators, resources and

2024 may be eligible for an average payout of

benefits

£700 under the scheme.

•

Now is the time to act decisively and ensure

Practical implications and challenges for the

Customer success stories - real world examples of where our experts have done this

your organisation is ready for this

before

unprecedented wave of regulatory action.

By the end of this ebook, you will have a clear strategy for achieving customer remediation to ensure your institution remains ahead of the curve during this turbulent time.

Let us guide you through the necessary steps to secure compliant customer remediation processes, expert resources and accelerator frameworks.

Discovery and health check

4

Product handling analysis

Data centralisation and correction strategy

£1.2bn

Lloyds triples car finance compensation provision to £1.2bn Motor Finance

£165m

Close Brothers Reserves £165M to Address Car Loan Commission Scandal Clear Cut Legal

£172m

Bank of Ireland sets aside €172m for car finance compensation

BBC

Customer communication and support

Closure and transition to BAU

5

How our services help We help financial institutions reduce the challenge, complexity and stress of mobilising customer remediation programmes through, skilled experienced professionals, proven accelerators and a people-first remediation approach.

Our deep domain expertise and industry-leading methodologies enables organisations to achieve faster regulatory compliance, improved data accuracy, and significant operational efficiency.

Our people and expertise has facilitated the successful remediation of over 500,000 customers across 28+ programmes covering loans, mortgages and investments.

This has delivered value, cost saving, and built trust with our financial services customers.

28+

PROGRAMMES

500,000 CUSTOMERS 6

Customer challenges Financial institutions look to us for support with their customer remediation programmes when they experience the following challenges;

Regulatory pressure

Struggle to achieve results

To achieve accurate, timely and complete

Limited internal resources and a lack of

customer remediation outcomes.

specialised remediation expertise.

Poor data quality

Outdated, incomplete, or inconsistent customer records

Locked within legacy systems and closed platforms, further compounded by limited

Fragmented or poor-quality data which can

internal knowledge and growing complexity.

hinder accurate calculation and reconciliation.

Growing high volumes of claims

Minimising reputational damage

Including verification, calculation, and payment,

When communicating with your customers about

placing significant strain on operational teams.

the remediation process.

7

Why choose Version 1 Our Approach

Data remediation framework

Remediation accelerators

Data remediation community

Benefit from best practice

Foundational IP that can be

Benefit from best practices and

approach to identification,

re-used and tailored to your

emerging trends.

containment, correction, and

project requirements to fast

final reconciliation:

track your delivery.

Our People

30+

170+

500+

Data remediation architects

Data specialists

Dedicated financial services experts

Our Track Record

30+

Successfully delivered data remediation projects

8

ISG European leaders: •

Data Science and AI Services

•

Data Modernization Services

•

Advanced BI and Reporting Modernization Services

1

9

10

Our data remediation framework

11

Data remediation framework Our framework encompasses the following areas, offering a structured approach to identification, containment, correction, and final reconciliation:

3. D central

1. Discovery and health check

2. Product handling analysis

Identify source data and analyse

Analyse data against initial problem

Centralise all releva

quality; assess readiness and

statement, identify additional handling

potentially impacted

availability and establish clear data

issues and impacting factors that will

financial produc

lineage and connection to facilitate

influence downstream activity and

information int

successful and accurate

refine problem statement.

repository that ca information in a

downstream activities.

fash

Correction

Analyse source da

problem statem

impacted populatio

lifecycles to identify and redress

We are global leaders in this area

We are global lea

Monitoring a

Maintain transparency and accountability throughout the remediation, meeting regulatory requireme

12

Data lisation

ant information on

d products, related

ct and customer

to a single data

an ingest external clear auditable

4. Customer communication and support Ensure transparent, accurate communication with your affected customers, tailored to their unique situations.

5. Closure and transition to BAU Manage tail activity and final closure reporting requirements. Ensure complete and seamless handover to business and process transition into BAU.

hion.

n strategy

ata against refined

ment to identify

ons, rebuild product

y degree of impact information.

aders in this area

and reporting

ents and providing clear documentation and self-serve data quality and process progress dashboards.

13

1. Discovery and health check Objective: Identify and assess the structure, availability and accuracy of critical data by building a thorough understanding of metadata configuration, data lineage and data quality to enable a seamless, compliant journey through all stages of the remediation cycle.

How we can help

Source data discovery

Metadata deep dive

Conduct a deep dive discovery across all source

Conduct deep dive discovery on source metadata

data to understand data levels, data connections

to ensure accurate understanding of structure,

between sources and availability of critical data

operations, and data constraints to enhance

points.

downstream data quality, improve data integration, and facilitate compliance with regulatory standards.

Data lineage and connections

Data quality assessment

Establish clear data lineage to understand origin,

Use data analytics to systematically validate data

transformation and final state of data. Map

points to ensure accuracy, completeness, and

connections between sources and systems to

consistency; defining appropriate data quality

enable downstream centralisation.

standards and optimal approach to corrections.

14

Accelerating success •

Metadata assessment checklist

•

Data readiness framework

15

2. Product handling analysis Objective: Define the initial impact and extent of the problem statement, identify any other related or unrelated issues that could influence remediation activity or require future separate remediation work and guide the business in problem statement refinement.

How we can help

Problem statement assessment

Beyond problem health check

Use deep dive analytics to pinpoint problem

Conduct full assessment on problem financial

scenarios and assess cause and impact of issue.

product to identify other related or non-related

Use findings and wide-net approach to capture all

issues in product management that could

potential impacts, then refine as clarity improves.

influence downstream remediation activity and may require alternative handling.

Targeted testing

Problem statement refinement

Engage in negative and positive testing, including

Collate findings and testing outcomes to advise

outlier analysis, to refine problem statement and

on problem statement refinement, data and

inform population segmentation. This testing also

population constraints and input into Business

helps highlight “near misses”.

Requirements Specifications.

16

17

3. Data centralisation and correction strategy Objective: Centralise all critical information into updateable, auditable Master Data Repository that informs the entire remediation journey at customer and financial product level. Identify redress and correction requirements through account rebuild.

How we can help

Data centralisation

Third-party data enhancement

Connect and centralise all financial product and

Engage with third-party services to support data

your customer detail into single, automatically

enhancement including address verification, track

updated Master Data Repository. Configure

and trace and customer status data e.g. deceased

repository to be able to ingest and store

to ensure correct and compliant customer

information from external data tools and third-

treatment.

party services.

Population identification Assess extent of problem on financial products and segment your customers appropriately by severity of impact, and associated product and customer details. Identify unique cases or customer groups that may require alternate correction methods.

18

Financial product rebuild and redress Rebuild financial products according to correct product handling to further enhance the accuracy of your customer segmentation. Build custom calculators to define redress values and define current ‘should be’ status of financial products.

Accelerating success •

Master data repository requirements

•

Base calculator framework

19

4. Customer communication and support Objective: Ensure transparent, accurate communication with your affected customers, tailored to their unique situation, full correction in favour of your customer and process progress transparency.

How we can help

Advisory support Translate technical issues into understandable language and suitable materials for front-line staff to enable clear customer conversations and query resolution.

Identify and reach impacted customers Work with the business to contact your affected customers, including those who may have changed status or details since the issue occurred. Engaging with third-party services e.g. letter generators where required.

Track remediation progress

Regulatory reporting

Update Master data Repository with progress

Work with business to inform the correct content

stages e.g. letter distribution, redress acceptance

and data points required for internal and external

and processed payments, returned mail or

regulatory reporting ensuring full visibility of

uncontactable customers.

correction progress.

20

Accelerating success •

Operational runbook

21

5. Closure and transition to BAU Objective: Seamlessly integrate all remaining tail activities into BAU workflows and ensure a smooth transition of all knowledge, documentation and support models back to the business.

How we can help

Assess resource requirements

Knowledge and process transfer

Work with the business to assess the skills and

Work with identified resources within BAU to

resources required to manage ongoing activities

handover ongoing activities, providing well

and schedules.

documented user guides, training materials and hands on coaching.

Records management and high risk record transfer

Lessons learned

Update, maintain and transfer High Risk Record

assessment to identify and transfer any best

Inventory with associated file paths, access requirements and passwords to ensure availability of required project information, outputs and files and support ongoing auditability and regulatory reporting whilst maintaining compliance to data protection.

22

Conduct full retrospective and lessons learned practice and processes to support future remediation activities.

23

Monitoring and reporting Objective: Maintain transparency and accountability throughout the remediation process, meeting regulatory requirements and providing clear documentation.

How we assist our customers…

Evidence preparation

Ongoing management information

Document all actions, approaches, outcomes, and

Produce suite of dashboards to report on all

data decisions for audit readiness, ensuring no

elements of the remediation journey from

unintentional harm to your customers and full

population volumes and customer segmentation

compliance to remediation requirements.

to fully remediated population numbers.

Regulatory reporting

Closure reporting

Build and collate method of circulating

Prepare final closure reporting and ensure the

appropriate progress reporting at necessary

remediation process is sustained in a business-as-

frequency to comply with reporting requirements

usual (BAU) capacity for long-term tracking.

for internal and external parties.

24

Accelerating success •

•

Document templates e.g. business

requirements document Dashboard templates

25

Benefits

Ensuring r

Providing c and timelin

M

W st

Our experience working with third parties Our remediation experts have extensive experience working with a range of third-party services that are often essential for the remediation process.

These services include address verification, customer track and trace, letter and cheque printing, and tax-related processes.

26

By leveraging our expertise, we help ensure you use third-party services efficiently and effectively, improving the accuracy and success of your remediation efforts.

For example, Equifax submissions must be made by the previous Friday to be included in Monday’s processing, ensuring results are returned within six working days rather than two weeks.

s of our services

regulatory compliance

confidence in both accuracy ness.

Mobilisation

We deliver results without placing additional train on your teams.

Unlocking data from legacy systems Expertise to access information trapped in legacy systems accelerating remediation.

Enrich fragmented or poor-quality data Enabling precise calculations, seamless reconciliation, and compliance to mitigate risk.

Automation and process optimisation Delivering faster and more cost-effective resolutions without compromising accuracy.

Customer-focused communication strategies Ensuring compliance and protecting your reputation while maintaining customer confidence.

27

28

Remediation accelerators and customer success stories

29

Remediation accelerators Foundational IP that can be re-used to fast track your delivery customers…

30

Discovery and health check

Data centralisation and correction strategy

Metadata assessment checklist

Data readiness framework

Ensures proper data management by identifying

Ensures data availability, structure, and

key metadata criteria, preventing data loss,

compliance upfront, minimising delays, rework,

governance issues, and remediation delays.

and optimising data centralisation.

Data centralisation and correction strategy

Data centralisation and correction strategy

Master data repository requirements

Base calculator framework

Defines key data elements for customer and

Provides pre-built financial calculation models for

product information, ensuring accurate,

interest, payments, and arrears, enhancing speed,

centralised data from the start to minimise errors

consistency, and accuracy in data remediation.

and delays in remediation.

Customer communication and support

Monitoring and reporting

Operational runbook

Document and dashboard templates

A structured execution plan detailing key steps,

Standardised templates and pre-configured

responsibilities, and dependencies, saving

dashboards streamline documentation, enhance

planning time, accelerating corrections, and

transparency, and improve data tracking, saving

ensuring regulatory compliance.

time and ensuring stakeholder visibility.

31

Where have we done this before Customer success stories

32

Case study 1

Case study 2

Customer mortgage remediation success for a prominent Irish banking provider

Customer investment remediation successfor a prominent UK banking provider

The bank discovered a mortgage overcharge

The Bank was required to remediate a large

issue, affecting their customers over twenty years.

Regulatory pressure and legacy systems presented challenges, coupled with supplier change due to high costs and ineffective solutions.

We transitioned activities within 4 weeks, established a new remediation plan, rebuilt processes, improved governance, guided strategic compliance, transitioned automated processes, and enhanced training materials for better data traceability, auditability, and performance.

volume of customers due to investment advice which didn’t perform to FCA standards. This was a multi-year remediation project, with a high level of scrutiny; a Skilled Person’s review of previous remediation activity had resulted in the project being placed on the regulator watchlist.

We developed a data model for 164 million records, automating data flow for investment and customer data. Leading requirements gathering, we managed expectations and drove decisions.

We addressed Skilled Person observations with strategies for population identification, detriment calculations, and customer sampling.

€30M+

€10M+

with 10,000+ customers remediated

preventing millions in fines and avoiding

within a 12-month time frame

reputational damage

€2.2M

164M

through advisory and population refinement

to define an impacted population of c.445k policies

Substantial fines avoided

Regulator watchlist removal

through accurate regulatory reporting

demonstrating significant progress in

Paid out in customer redress

Redress savings achieved

Paid out in customer redress

Data records processed

customer fairness 33

34

Complimentary consultancy session We are delighted to offer you a complimentary consultancy session to evaluate your compliance and data remediation readiness.

The outputs of this session are; •

Highlight potential compliance risks and opportunities to optimise ongoing processes •

Share recommendations to address key challenges to ensure your organisation is well-prepared and aligned with best practices Contact us today to kick-start your remediation program success.

35

More resources We have a wide range of transformational offerings, insights, webinars and more, tailored specifically for financial services.

Visit our website for further information on our customer remediation services or to contact us with your questions.

Financial services sector

Data and AI services

Our financial services expertise drives

Data and AI improves business by automating

innovation, outpaces competitors, and helps

processes, enhancing productivity, and

clients harness disruption to achieve their

enabling high-quality decision-making for

ambitions through secure and responsible

sustained success.

solutions.

ASPIRE managed services

SAM services

Integrate AI, continuous improvement, and

Software Asset Management (SAM) helps

innovation, supported by experts with

companies manage software buying, usage,

industry sector experience, ensuring

inventory, and compliance, leading to savings

operational maintenance and optimisation.

and protection from non-compliance risks, both on-premises and in the cloud.

36

Application modernisation

Experience design and development

We drive valuable business outcomes through

Experience design and development offer

AI, delivering exceptional experiences. We are

recommendations for App Modernisation,

trusted experts in application modernisation

Enterprise Apps, Cloud Transformation, and

and integration, with extensive technology

Data X AI, ensuring your technology delivers

and sector experience.

high-quality customer experiences.

Cloud transformation

Enterprise applications

Unlock cloud scalability, security, and agility.

As experts in HR and business transformation,

We optimise cloud platforms, modernise

we enhance operational agility, reduce costs,

applications, and drive innovation with deep

and drive results, unlocking your full business

cloud expertise and a value-led approach.

potential with strategic decisions and deep industry and enterprise app knowledge.

37

Contact us today to kick-start your remediation program success

info@version1.com version1.com