𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The Financial Conduct Authority (FCA) suggests most individuals will get less than £950 compensation, based on total payouts.

A statement on Sunday said the FCA will start a consultation period on an “industry-wide compensation scheme” which will now run for some time.

The FCA also said they will come up with rules for determining compensation levels.

Those rules will determine “how lenders should consistently, efficiently and fairly decide whether someone is owed compensation and how much”

The FCA will also ensure firms are following those set down rules and act accordingly if they’re not.

Nikhil Rathi, chief executive of the FCA, said:

“It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated. We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”

“Our aim is a compensation scheme that’s fair and easy to participate in, so there’s no need to use a claims management company or law firm. If you do, it will cost you a significant chunk of any money you get.”

“It will take time to establish a scheme but we hope to start getting people any money they are owed next year.”

Given the car finance ruling came down from the Supreme Court on Friday after markets closed, today is the first moment of reaction in share price terms.

As the total compensation which might be paid out is on the lower than expected end, the share prices for lenders who may have to pay out the compensation have shot up accordingly.

Lloyds are up 6 per cent in early trading, while FTSE 250 firm Close Brothers have rocketed more than 20 per cent.

Two lenders, FirstRand Bank and Close Brothers, challenged a Court of Appeal ruling that the “secret” commission payments paid to car dealers as part of finance arrangements made before 2021 – without the motorist’s fully informed consent – were unlawful.

After the Supreme Court’s decision the bulk of the claims will therefore not go ahead, with only the most serious claims eligible for compensation. The £18bn figure is a significant drop from the £45bn if the Supreme Court upheld the ruling in full.

More details on that here from Alex Croft:

We’ll get into the car loan mis-selling latest momentarily but let’s quickly check into money markets first after opening. Investors will be watching stock market levels this week after most took a sharp downward turn at the end of last week.

That came as Trump’s original tariff deadline came and went with another extension and another raft of new rates for some countries.

This morning the FTSE 100 has risen 0.05 per cent in the opening minutes of trading, but it’s very much a timid-feeling position.

The German DAX is up 0.45 per cent and the Euro Stoxx 50 is up 0.64 per cent.

Good morning and welcome to our business live blog covering the usual company news, FTSE 100 and stock market movements and everything regarding your money.

Today we also take on board the car loan scandal and the latest movements there.