MILLIONS of people with motor finance commission mis-selling claims will receive compensation in 2026 under plans to set out final rules for a redress scheme in late March, the City watchdog has announced.
The Financial Conduct Authority (FCA) said it is likely to make several changes to the proposed compensation scheme after receiving more than 1,000 responses to its consultation on the plans.
It said a final decision has not yet been made, but that if and when the scheme does get the green light, it expects to give lenders a three-month implementation period to pay out redress, with up to five months for older motor finance agreements.
Consumers would be told within three months of the end of the implementation period whether they are owed compensation and how much, but could then accept immediately without waiting for a final determination, according to the FCA.
The FCA said: “Even with an implementation period, streamlining the process means millions of people would receive compensation in 2026.”
