Schemes, redress and litigation: approaches to dealing with mass consumer liability events

This In Practice article considers different mechanisms for consumer redress including schemes of arrangement, Financial Conduct Authority redress schemes and redress via the courts and the extent to which they achieve finality for a corporate party. The article also considers the impact of mass compensation events on investors where the loan or other financial product, the subject of the redress scheme, has been securitised. At the time of publication, the Supreme Court’s judgment in Johnson v FirstRand Bank Ltd was not yet handed down and this article therefore does not consider the impact of that decision.