Overview

• An FCA consultation on the proposed redress scheme opens in October.
• The plan covers personal contract purchase and hire purchase agreements taken out from 2007 to 2021, affecting an estimated 6.6 million drivers.
• Total compensation is projected at £9 billion to £18 billion, with average individual payouts of £950.
• The move follows a July Supreme Court ruling that dismissed most secret-commission claims but upheld Marcus Johnson’s unfair-relationship challenge.
• Drivers are advised to file complaints directly with lenders now and avoid claims management firms to safeguard potential awards.