Overview
- The FCA plans to set out final criteria in early 2026 and says it hopes to begin paying compensation next year, with existing complainants told payouts could arrive within about nine months.
- Roughly 14 million agreements from 2007 to 2024 could be eligible, with average compensation of about £700 and an estimated total redress of £8.2 billion.
- Major lenders have lifted provisions—Lloyds to £2bn, Close Brothers to £300m, Barclays to £325m—while Santander delayed results citing uncertainty, and some firms are weighing legal action.
- A key dispute centers on what counts as unfair commission, with a Supreme Court case finding 55% unfair versus the FCA’s proposed 35% threshold for its scheme.
- Consumer tools led by Martin Lewis and MoneySavingExpert have processed more than 3.3 million DIY complaints, which could speed payments, as the FCA warns drivers to avoid scammers seeking personal and bank details.