Overview

• The proposed scheme covers motor finance agreements from 6 April 2007 to 1 November 2024 where commission was payable by the lender to the broker.
• Eligibility hinges on undisclosed features such as discretionary commission arrangements, high commission (at least 35% of total cost of credit and 10% of the loan), or contractual ties giving lenders exclusivity or first refusal.
• The FCA estimates about 14.2 million agreements could be considered unfair, with average redress of roughly £700 per agreement and an industry bill of about £8.2bn at an 85% take‑up rate (up to £9.7bn at 100%).
• Once the scheme launches, lenders must contact existing complainants within three months and others within six months, while consumers who are not reached will have one year to submit a claim directly.
• The regulator says the process will be free for consumers and warns against using claims management firms, noting recent Supreme Court rulings narrowed hidden‑commission claims but confirmed routes where agreements were unfair.