6:49 am, March 30, 2026
Motorists will find out today how much they will be compensated over mis-sold motor finance agreements, as the Financial Conduct Authority (FCA) is due to share its plans for an industry-wide redress scheme.
The watchdog is expected to publish its final decisions on the long-awaited programme on Monday afternoon after markets close.
The FCA set out draft plans last year but it is likely to make several changes after receiving more than 1,000 responses to its consultation.
Earlier this month, it said it would likely be imposing an ‘implementation period’ to help streamline the process.
Under the latest proposals, the scheme will cover car finance agreements taken out between April 6, 2007 and November 1, 2024.
The FCA estimated that around 14 million deals, or 44% of all those made since 2007, were unfair and therefore eligible for compensation.
Consumers were estimated to be compensated an average of £700 per agreement, but it will be more or less depending on individual cases.
This was expected to come at a total cost of £11bn to the industry, including the total payouts and the operational costs of running the scheme.
Lenders and car finance providers had been challenging the FCA’s proposals with some raising concerns that the expected amount of compensation is too high and does not accurately reflect what customers lost.
On the other side, some consumer groups and MPs have argued that many motorists will be short-changed under the current plans.
The FCA has already announced some changes that it is making to the process since the proposals were unveiled last year.
As reported by Car Dealer in February, car manufacturer finance providers are expected to be exempt from the redress scheme, following ‘heavy lobbying’ from firms.
The FCA thinks that this means million of people would receive compensation in 2026.
