Compensation will cost the industry up to £9.1bn, including administrative costs. Individual payouts will vary, depending on the degree of harm each driver faced.
With huge compensation payouts inevitable, some lenders have already set aside millions of pounds to cover the cost.
Barclays has decided to start making compensation payments early, potentially to start clearing the cost off its balance sheet. It pointed out that claimants had already faced “a considerable wait”.
“By making these early settlement offers, we are giving some customers the option of receiving redress sooner, rather than waiting for the legal challenges and any subsequent FCA action to conclude,” said a Barclays Partner Finance spokesperson.
“Each offer will be calculated using the FCA’s redress scheme methodology. We will clearly explain how it has been calculated and what accepting a full and final settlement means, so customers can decide whether accepting the offer is right for them.”
The lender said claimants would start to be contacted directly “in the coming weeks”.
But it stressed not all customers whose complaints were acknowledged on or before 1 October 2026 would receive an early settlement offer.
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