Dan Coatsworth, head of markets at AJ Bell, said: “Millions of people hoping for a cash windfall from motor finance mis-selling compensation might find the money lands just in time to deal with a big increase in the cost of living.
“Whereas qualifying motorists might have previously earmarked any compensation for a treat like a holiday or a shopping spree, the sharp rise in energy prices over the past few days might warrant other plans for that money.
“If the energy shock is sustained and household bills soar, a compensation-related windfall might help to ease that pain.
“The Financial Conduct Authority is keen to streamline the proposed compensation scheme and speed up the process so affected individuals can learn what they’re owed and get that money.
“Lenders including Barclays, Lloyds and Close Brothers have already set aside large sums of money to cover any compensation payments, and they will want to put the episode behind them as soon as possible.”
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