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The Guardian - UK
The Guardian - UK
Business
Rupert Jones

UK lenders face huge car loan payout bill as watchdog moves closer to compensation plan

a car showroom with payment plans etched in yellow lettering across the car windscreen saying £159 per month
The FCA will announce its decision on a potial compensation scheme within six weeks of a landmark supreme court hearing early next month. Photograph: Matt Cardy/Getty Images

Banks could be forced to proactively tell customers they have been mis-sold car finance, as the financial watchdog’s plans for a compensation scheme affecting potentially millions of Britons moved “one step closer”.

The Financial Conduct Authority (FCA) said on Tuesday it would announce its decision on such a scheme – which could result in redress totalling billions of pounds – within six weeks of a decision following a landmark supreme court hearing early next month.

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