Overview
- A House of Lords committee accused the FCA of a “deep lack of clarity,” pressed it on an 18-year lookback to 2007, and questioned its oversight, while the regulator defended its approach as lawful and necessary.
- The FCA is consulting on a mass compensation scheme for motor finance agreements from April 2007 to November 2024, estimating about 14.2 million eligible deals with average payouts of roughly £700, or around £8.2 billion in total.
- Under the proposal, customers identified in discretionary commission arrangements would be contacted and paid automatically unless they opt out, while many others would need to opt in, with firms expected to make contact within six months of launch and payments likely in early 2026.
- Lenders increased provisions and criticised the FCA’s methodology: Lloyds added £800 million to take reserves to £2 billion and Close Brothers lifted provisions to about £300 million, noting the FCA’s 35% threshold differs from a 55% example in a Supreme Court ruling.
- Martin Lewis urged consumers who used HP or PCP to submit complaints now using MSE.com templates, highlighting risks of outdated contact details, while noting PCH leases are excluded and fee-charging claims firms are unnecessary.