Overview
- The regulator found widespread non‑compliance in motor finance sold between 6 April 2007 and 1 November 2024, leaving millions potentially eligible for compensation.
- Lewis cautions that ticking online terms on so‑called free checks can sign people up to claims firms, which could take roughly 30% of any award worth about £700 on average.
- The FCA reviewed around 32 million agreements and estimates about 44% may be unfair, largely due to discretionary commission setups that let brokers raise interest rates for higher commissions.
- A scheme is expected to launch early next year, with lenders given three months from launch to contact customers, and some payments set to be made automatically without applications.
- Consumers are urged to use free template letters rather than paid intermediaries, with the FCA running a £1 million awareness campaign and acting against firms charging exit fees; roughly four million complaints have already been lodged.