Related topic: motor finance

Eligibility criteria have been tightened, average compensation increased for older agreements, and a minimum 3% compensatory interest rate per annum added.

The compensation scheme will include an implementation period.

Law firms and CMCs are being reminded to have robust checks in place to confirm consumers have not already instructed another representative.

However, people are now expected to receive around £700 on average, below the initial estimate of £950.

The announcement follows last Friday’s landmark ruling by the Supreme Court.

A huge spike in motor finance FOS complaints sends an urgent message to lenders.

The FCA may also consult separately on changes to its rules.