Overview
- If confirmed, final rules will be published outside market hours in late March, followed by a three‑month implementation window for lenders, extended to up to five months for older agreements.
- Customers who complained before the scheme starts would be automatically included, receive a decision within three months of the implementation period ending, and could accept offers immediately.
- The FCA plans to simplify communications by dropping recorded‑delivery requirements and allowing varied contact channels with safeguards against fraud.
- The proposed scope covers about 14 million agreements, with average payouts around £700 and an overall industry cost estimated at roughly £11 billion including implementation.
- Banks have increased provisions and warned of market impacts, while the FCA advises consumers to complain now and not to use claims management companies that may take over 30% of compensation.