Overview

• Under the proposal, PCP and HP agreements where lenders paid commission to brokers would qualify, with focus on undisclosed discretionary commissions, high-commission deals, and lender–broker contractual ties.
• The FCA estimates about 14.2 million agreements were unfair, with average compensation of roughly £700 per agreement and an industry bill of about £8.2bn, rising to £9.7bn in a full take‑up scenario.
• The consultation is open now, with lenders asked to respond by 18 November and final rules expected in early 2026, after which payments are targeted to begin next year.
• Once the scheme goes live, lenders must contact existing complainants within three months and other customers within six months, with a one‑year claim window for those not reached.
• The regulator urges consumers to claim directly using its free templates rather than claims firms, and the scheme would cover roughly 30 lenders representing about 89% of the market.