Overview
- The FCA set the final rules for an industry-wide payout, created a joint taskforce with the SRA, ICO and ASA, and set up a team to supervise lenders.
- The scheme covers 12.1 million agreements from 2007 to 2024 with average payments of about £830 and an estimated total cost of £9.1bn, including £7.5bn in compensation.
- The FCA says people do not need a claims firm or lawyer to apply and warns there is no evidence court cases deliver better results, with representatives often taking about 30% of payouts.
- Consumers face set implementation windows by loan age and a final cutoff in 2027 for those not contacted, with most early claimants expected to be paid this year.
- Regulators will target misleading ads, meritless or duplicate claims and unfair exit fees, and have already ordered changes to 800 adverts, probed 71 law firms and closed seven.