Tue, 09 Sep 2025

Tue, 09 Sep 2025 Car finance compensation should be paid next year

Millions of motorists are in line for payouts after being mis-sold loans to buy new and used cars.

* Up to 30 million car loan agreements may be eligible for compensation due to mis-selling.
* Payouts could be worth less than £950 per deal, with fewer people eligible compared to the PPI scandal.
* The FCA is planning an awareness campaign to explain how claimants can receive compensation.
* Not all motor finance firms are cooperating with the regulator as they plan the compensation scheme.
* Some claims management companies have overblown potential payouts and been asked by the FCA to remove or amend their adverts.
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