Overview

• The regulator warns that using a claims management company or law firm could cost consumers around or over 30% of any compensation.
• The proposed industry-wide scheme would cover loans taken between 2007 and 2020, with details to be set out in a consultation in early October 2025 and payments expected in 2026.
• The FCA says most individual awards, if the scheme proceeds, would likely be below £950.
• The £1 million outreach includes radio and online adverts and posts on Instagram and TikTok over the next two months, featuring influencers such as Cameron “Cazza” Smith.
• FCA-commissioned research found 79% of motor finance customers are aware they may be owed compensation, 61% know of a possible scheme, and 41% of those did not know intermediaries are unnecessary.