Core Viewpoint - The Financial Conduct Authority (FCA) has established a compensation scheme for approximately 14.2 million drivers affected by unfair car finance practices, with payouts averaging £700 per driver, totaling up to £11 billion in compensation [1][2][4]. Group 1: Compensation Scheme Details - The FCA confirmed that the compensation scheme will address cases where car salesmen received unreasonably high commissions from banks, impacting the fairness of motor finance agreements [3][6]. - The estimated compensation cost of £11 billion is significantly lower than the previous forecast of £18 billion, indicating a more manageable financial impact on lenders [2]. - Approximately 44% of all motor finance agreements made between 2007 and 2024 are expected to qualify for compensation under this scheme [4]. Group 2: Regulatory Actions and Consumer Guidance - Lenders are mandated to contact eligible customers within six months of the scheme's initiation, streamlining the compensation process [5]. - The FCA's chief executive emphasized that consumers who have already complained do not need to take further action, as firms will reach out to them [6]. - The establishment of the redress scheme follows a Supreme Court ruling that acknowledged unfair treatment of customers due to high commissions, although it limited the scope for payouts by rejecting some claims [7]. Group 3: Economic Implications - Concerns have been raised regarding the broader economic impact of the car finance scandal, with warnings that ongoing legal cases could deter investment and affect the overall economy [8].