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Tue, 31 Mar 2026

Tue, 31 Mar 2026 'I sent eight letters': Drivers hope for payout from car finance redress scheme

Millions of motorists could be entitled to compensation with the financial regulator setting out how to apply

* Around 40% of car loan borrowers between April 2007 and November 2024 may be entitled to redress, with millions set to receive payment this year.
* The FCA has revealed that drivers who were sold agreements with a discretionary commission arrangement (DCA) without being told about it are eligible for compensation.
* Other arrangements between lenders and dealers that may entitle drivers to compensation include: + Non-disclosed fees or charges + Unfair interest rates + Hidden loan conditions
* The FCA estimates 12 million people will be entitled to compensation, with an average payout of £829 each.
* Some exceptions apply where the FCA may consider cases fair despite these arrangements being present.
* Borrowers can claim compensation through a centralised redress scheme without going to court, but some are opting to use claims management firms or lawyers instead.
* The FCA warns against scammers posing as car finance lenders offering fake compensation.