PS26/3
A verified, audit-ready payments process for motor finance redress
Under PS26/3, motor finance lenders are duty bound to pay redress to affected customers. Bonafidee protects your firm by completing identity verification with irrefutable evidence packs.
The challenge facing motor finance lenders
PS26/3 requires lenders to proactively contact customers affected as far back as 2007, present the basis of their redress, obtain consent and demonstrate the entire process to the regulator. Senior managers are required to personally attest to having taken responsibility for the firm’s oversight and delivery of the scheme – a named personal obligation under SMCR.
The implementation deadlines are fast approaching: 30th June 2026 for loans taken out from 1st April 2014 and 31st August 2026 for loans agreed earlier. Digital outreach is the only channel that produces a verifiable, auditable evidence pack in the same journey. Using unverified channels will create fraud exposure and leave you with nothing for the FCA to audit.
Where Bonafidee steps in
Once you have your data and are ready to proceed, Bonafidee handles the rest.
Step 1:
Secure outreach
You send a link to your customer. No personal data travels by email.
Step 2:
Identity verification
In a single authenticated session we confirm the individual is who they say they are using multi-point ID and biometric checks.
Step 3:
Bank account confirmation
We verify the destination account belongs to the verified individual. This eliminates impersonation fraud before a penny moves.
Step 4:
Consent capture
The customer reviews the redress offer and accepts or declines within the same session. All consent is tied to the same verified identity.
Step 5:
Evidence returned
A digitally sealed evidence pack is returned to your system or case management portal, confirming the full journey – identity, consent, bank details, outcome and timestamp.
Compliant, safe, simple, cost-effective
Bonafidee is an all-in-one solution for handling ID verification for redress, keeping your firm compliant and protected, while integrating seamlessly with your existing systems.
Regulatory defence
The evidence pack is created by an independent third party. Irrefutable in audit or FCA review. PS26/3 requires firms to report regularly to FCA supervisors. An independently produced evidence pack is your audit ready record from day one.
Fraud prevention
PS26/3 requires consumer communications to use secure channels with a unique reference number per consumer. This process fulfils that requirement, with impersonation, deceased estate abuse and redirected payments all caught before authorisation.
Cost efficiency
A verified digital journey costs a fraction of a registered letter and returns a sealed compliance pack automatically at scale.
Already onboarded
Bonafidee is already an approved and onboarded supplier with many UK lenders, with API integration compatible with major case management and programme management portals.
Ready to take control of redress payments?
Trusted by the motor finance industry for more than 10 years, Bonafidee is the best option for protecting your firm during this turbulent period. Book a demo with our expert team today.
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