Overview

• The proposed scheme covers about 14.2 million motor finance agreements taken out between April 6, 2007 and November 1, 2024 where commission was paid by lenders to brokers.
• Compensation would apply only where key features were not properly disclosed, including discretionary commission arrangements, high commissions exceeding set thresholds, or exclusive lender–broker ties.
• The consultation is open now with industry responses due by November 18, final rules are expected in early 2026, and initial payments are planned to start later that year.
• Access would be free and opt-in, lenders will prioritise customers who have already complained, and the FCA urges borrowers to complain directly and avoid claims management firms.
• The FCA estimates a central compensation bill of £8.2bn, rising to £9.7bn at full take-up, with major lenders such as Lloyds, Santander, BMW UK, Close Brothers and Barclays already booking provisions.