Overview

• The Financial Conduct Authority will launch an industrywide consultation in early October on an automatic redress scheme estimated at £9–18 billion, with payouts slated to begin in 2026.
• The regulator has paused individual complaint handling and opted for an automatic scheme following a July Supreme Court ruling that upheld at least one unfair-relationship claim.
• Motorists have reported receiving fraudulent texts that include real registration numbers and car makes, falsely promising up to £16,000 in compensation to lure recipients into clicking malicious links.
• Consumers are urged to treat unsolicited finance messages with suspicion, verify any compensation notifications through official FCA or lender channels and avoid clicking on links.
• The FCA advises against using claims management companies or solicitors for compensation, warning that they typically retain up to 30 percent of any settlement.