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Sun, 29 Mar 2026

Sun, 29 Mar 2026 Compensation details for millions of drivers set to be revealed

The City regulator will outline how millions of people can claim compensation for mis-sold car finance.
The Financial Conduct Authority (FCA) will publish its final rules on the scheme later today, detailing the payout programme for 14 million motor finance agreements made between April 2007 and November 2024. The FCA's scheme aims to compensate drivers who were mis-sold car finance deals due to commission arrangements, unfair contracts, and inaccurate information given by lenders and dealers. Lenders face administrative costs of around £3 billion, while the total payout is estimated to be over £8 billion, with 44% of all motor finance agreements eligible for compensation. The payouts relate to issues such as discretionary commission arrangements (DCAs), which were banned in 2021 after the FCA found they provided an incentive for customers to be charged higher interest rates than necessary. Major lenders, including Lloyds, have set aside billions of pounds already, but the regulator's scheme could still face a legal challenge by lenders and claims management companies. Drivers who are eligible will be contacted by their lender to invite them to make a claim, with some drivers potentially receiving payouts earlier if they have already made a claim.