UK unveils up to £18bn scheme for car finance mis-selling compensation
TL;DR
Victims of car finance mis-selling are expected to receive less than £950 per deal through a proposed compensation scheme by the FCA, with the first payouts anticipated next year. The Supreme Court ruled that hidden commissions from lenders to dealers were not unlawful, but left open the possibility for claims related to large commissions deemed unfair. The FCA plans to consult on eligibility and payout amounts, covering agreements from 2007 onwards, with the industry expected to bear the costs.
- Car finance mis-selling payout scheme could be worth billions BBC
- City regulator unveils car loan compensation scheme worth up to £18bn The Guardian
- UK's FCA proposes 9 billion to 18 billion pound redress scheme for motor finance claims Reuters
- Why banks are still on the hook over car finance despite UK court victory Financial Times
- FCA Head Says Car Loan Claims to Be Lower Than PPI: Sunday Times Bloomberg.com
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