Drivers Await £700 Car Finance Scandal Decision on Monday After 5pm
Motorists across the UK are poised for a major update on Monday, March 30, 2026, as the Financial Conduct Authority (FCA) prepares to publish its final decisions on the long-awaited car finance scandal compensation programme. The announcement is scheduled for after 5pm, following the closure of financial markets.
Compensation Scheme Details and Eligibility
Under the latest proposals, the redress scheme will cover car finance agreements entered into between April 6, 2007, and November 1, 2024. The FCA has estimated that approximately 14 million deals, representing a staggering 44 percent of all agreements made since 2007, were unfair and therefore eligible for compensation.
Craig Tebbutt, a financial health expert for Equifax UK, commented: "It has previously been estimated that average compensation levels could be in the region of £700 per agreement, but the final details around the scale, scope and timelines are expected to be confirmed on Monday. However, there is nothing to stop consumers checking their paperwork now and getting their details ready in the meantime."
Potential Payouts and Consumer Preparedness
The Financial Conduct Authority has proposed a 'mass redress' initiative, with approximately £8 billion set aside to cover the estimated 14 million agreements. The regulator anticipates the average compensation payment will be around £700 per person.
Tebbutt highlighted that research conducted by the credit reporting firm revealed "many consumers don't know how to check their eligibility and expect the process to be a hassle, with old or missing paperwork being a real barrier." He urged drivers to proactively review their documentation ahead of the official announcement.
Implementation Timeline and Process
The FCA's consultation concluded in December 2025, with a pause on handling all cases due to be lifted on May 31, 2026. Following Monday's announcement, firms will have an initial three-month 'implementation' period to prepare, which could extend to five months for older agreements.
According to the Money-Saving Expert Website: "After it's launched, firms will have an initial three-month 'implementation' period (this could be up to five months for older agreements) to prepare. For those who've already complained, you'll be told of any redress you're owed within three months of the implementation period ending, asked if you want to accept it, then paid. That should happen by the end of 2026."
This landmark decision represents one of the largest consumer compensation programmes in recent UK financial history, with millions of drivers potentially receiving significant payouts for unfair car finance practices spanning nearly two decades.
