Overview

• About 14.2 million motor finance agreements — roughly 44% of those between April 6, 2007 and November 1, 2024 — are likely to be deemed unfair, with average compensation of around £700 per agreement.
• The FCA estimates total redress of about £8.2 billion based on expected participation, rising to up to £9.7 billion if every eligible consumer takes part.
• Eligibility requires inadequate disclosure of at least one feature: a discretionary commission arrangement, a high commission (over 35% of total credit cost and 10% of the loan), or a contractual tie giving a lender exclusivity or first refusal.
• The scheme is intended to be free and simple to use, with lenders contacting prior complainants within three months of launch and other customers within six months, and with a one‑year window for uncontacted borrowers to claim; the FCA warns consumers not to use claims firms and to be alert to scams.
• Consumers may opt out and pursue court action, though outcomes and costs are uncertain, and industry groups including the Finance and Leasing Association have questioned the regulator’s higher‑end cost estimates.