Overview

• Average compensation is guided at about £700 per affected agreement, spanning deals from April 2007 to November 1, 2024 tied to lender‑paid commissions.
• The misconduct centers on discretionary commission arrangements that rewarded higher interest rates and were banned in 2021.
• Under the proposal, lenders will first review cases from people who have already complained, then contact other customers within six months of the scheme starting, with opt‑in and decision windows set by the FCA.
• Industry groups dispute the scale of losses and argue the estimates are too high, while banks have disclosed provisions of just over £2bn against a proposed bill of roughly £8.2bn.
• Consumers are being urged to claim directly rather than use claims management or law firms, which can take substantial fees, with the FCA planning awareness efforts and payments expected to begin next year if the scheme proceeds.