Overview

• The FCA will release a statement and launch a consultation shortly after markets close, including its calculations for a proposed industry-wide scheme.
• The regulator has signalled an overall cost of £9 billion to £18 billion, a range questioned by the Financing and Leasing Association, which has asked to see the working.
• Up to 14 million people could be eligible according to Martin Lewis, with cases centered on undisclosed or discretionary dealer commissions that were banned in 2021 and influenced by a recent Supreme Court ruling.
• Most individuals are expected to receive less than £950, with the consultation to consider how interest is calculated, including a base-rate-plus approach.
• If approved after consultation, first payments could begin next year, and consumers are urged not to pay claims firms because the FCA intends a free, easy-to-access process.