The Financial Conduct Authority (FCA) said it was a reaction to rising tensions between consumers and lenders over so-called discretionary commission arrangements across the motor finance market – a practice that was banned in 2021.
It promised that settlements would be sought should widespread misconduct before that time be found.
The Financial Ombudsman Service (FOS) said it had heard from more than 10,000 people and “many more are waiting in the wings.”
