Sun, 03 Aug 2025

Sun, 03 Aug 2025 Victims of mis-sold car finance could get less than £950 per deal

The financial services regulator will consult on a redress scheme for motorists following a court ruling, though many drivers will be ineligible.
The Supreme Court ruled that hidden commissions from lenders to dealers were not unlawful, but left open the possibility of claims for unusually high commissions. The FCA will consult on running a payout scheme estimated to cost between £9bn and £18bn. Millions could be eligible for compensation, which will cover agreements dating back to 2007. The industry is expected to cover the full costs of any potential compensation scheme. Those who have already complained do not need to do anything, while those who have yet to complain are advised to contact their car loan provider rather than using a claims management company. The FCA said it will start its consultation on who should be eligible for compensation and how much they should get in October, with the Supreme Court ruling providing "clarity". A payout of £950 or less per deal is expected for victims of car finance mis-selling. The FCA has estimated that a compensation scheme could cost between £9bn and £18bn. Millions of motorists may be eligible for compensation under the proposed scheme.
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