- Millions of Britons who were mis-sold car loans could receive compensation this year, as the UK's Financial Conduct Authority (FCA) prepares to finalise rules for a redress scheme later this month.
- The FCA has indicated it will likely amend its proposed compensation framework following extensive consultation, though a definitive decision on whether the scheme will proceed has not yet been made.
- If approved, lenders would have three to five months to disburse compensation, with consumers being informed within three months of this implementation period concluding whether they are due a payout.
- The scheme, which could address up to 14 million unfair motor finance deals, is estimated to cost lenders about £11 billion, leading to significant pushback from the industry.
- The FCA advises consumers who believe they were mis-sold car loan deals due to hidden commission to complain directly to their finance provider now, rather than using claims management companies.
IN FULL
Millions of drivers set to get long-awaited motor finance compensation payouts this year
