Overview
- The FCA, which finalized the plan Monday, will cover loans from 6 April 2007 to 1 November 2024 with about 12.1 million agreements eligible and an average payout of roughly £829.
- Firms must implement the scheme by 30 June 2026 for loans from 1 April 2014 or by 31 August 2026 for older deals, then tell complainants within three months if they are owed money.
- Lenders will contact only customers likely to be due redress within six months of those dates, and anyone not contacted can claim until 31 August 2027.
- Eligibility applies where commission links were not clearly disclosed, including discretionary or high commission or exclusive‑lender ties, with exclusions for minimal commission and 0% APR cases and caps on about one in three payouts to avoid overpayment.
- The regulator estimates £7.5 billion in redress and about £9.1 billion in total industry costs, and it has created a taskforce with the SRA, ICO and ASA to curb abuses by claims firms and warns drivers not to use CMCs that can take up to 30% of any payout.