Car Finance Redress Figures Explained

The FCA's motor finance figures describe an estimated industry-wide scheme. They do not tell an individual driver whether they qualify or what their lender will pay.

Reviewed 28 October 2026. The figures below come from the FCA's final policy explanation. They are policy estimates, not payments already made. The scheme remains affected by legal challenges.

£7.5 billion and £9.1 billion measure different things

The FCA estimates £7.5 billion in consumer redress, based on expected participation. It also estimates £1.6 billion in non-redress costs, bringing the overall bill to firms to £9.1 billion.

The arithmetic is £7.5bn + £1.6bn = £9.1bn. Calling the entire £9.1bn a pot available for customer refunds would include administrative and other costs that are not compensation.

Agreements are not the same as people

The final policy estimates 12.1 million eligible agreements. Someone may have more than one agreement, while another person's agreement may be excluded. The FCA's consumer page describes this as about 37% of agreements made during the relevant period.

These figures concern agreements assessed under the scheme rules, not a promise that every motorist who used finance will be paid. Eligibility depends on commission arrangements, disclosure and applicable exceptions.

Why dividing the headline figures gives a different average

The FCA's detailed table gives an estimated £829 average per eligible agreement, rounded to about £830 in consumer guidance. The £7.5bn expected payout assumes 75% participation, rather than every eligible agreement taking part.

For an approximate check:

1. Step 1: Estimate participation. 12.1 million × 75% = 9.075 million agreements.
2. Step 2: Divide expected redress. £7.5 billion ÷ 9.075 million is about £826.
3. Step 3: Allow for rounded inputs. The headline billions and agreement totals are rounded, so this check will not reproduce the model's £829 exactly.

Dividing £7.5bn by all 12.1 million agreements mixes expected participation with the full eligible population. Neither calculation values your own agreement.

What changed from consultation

The final policy differs from the earlier consultation in eligibility, estimated participation, redress methods and costs. An older headline citing a larger population or different bill may describe a proposal rather than the final rules.

When comparing sources, record their publication date and whether they describe consultation estimates, final policy, a bank's provision or actual payments. Those are different measures.

Expert Insight: An average can help explain the scale of a scheme, but it is not a minimum, a typical guaranteed outcome or evidence that your agreement qualifies.

Common mistakes

Do not describe bank provisions as cash allocated to individual customers, count agreements as unique claimants, or assume a larger loan guarantees a proportionately larger award.

The FCA's latest hearing update confirms that payment timing depends on the legal outcome and any appeal. Use our eligibility guide to understand the assessment and our calculator explanation to understand the limits of online estimates.