- 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.
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