The Financial Conduct Authority (FCA) set out its £7.5bn redress scheme for consumers affected by mis-sold motor finance loans this week
More than 12 million agreements made between 2007 and 2024 are eligible for compensation, averaging £830 per pay-out.
The FCA has designed its scheme so that applicants avoid using claims management companies and law firms.
It has also, along with the Solicitors Regulation Authority and other regulators, launched a taskforce to tackle poor handling of motor finance claims by some claims management companies and law firms, following the Supreme Court’s landmark judgment exposing the scandal, Johnson v FirstRand Bank [2025] UKSC 33.
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