Overview

• FCA chief Nikhil Rathi told MPs the regulator will publish an industry consultation by early October and hopes to begin paying compensation in 2026 if a scheme is approved.
• Around 30 million agreements from 2007 to roughly 2020 are in scope, though eligibility criteria will be defined in the consultation rather than automatically covering every case.
• The scheme will focus on discretionary commission arrangements, estimated at about 14.6 million deals, which the FCA says often breached disclosure rules and created unfair relationships.
• Average payments are expected to be hundreds of pounds, often below £950, with the total industry cost projected between £9 billion and £18 billion.
• The FCA says it has challenged about 400 claims‑management promotions (171 since the Supreme Court ruling), urges consumers to claim directly, will scrutinize any lender claims of missing records, and expects at least 38 firms to participate.