US EditionFCA Says Motorists Could Receive £950 Payout as Finance Compensation Considered
UNITED KINGDOM, AUG 3 – The Financial Conduct Authority plans a scheme to compensate motorists mis-sold car loans due to hidden commissions, with payouts averaging under £950, starting in 2026.
- In a Sunday statement, the Financial Conduct Authority announced plans to consult on a compensation scheme costing between 9 billion and 18 billion pounds, with victims likely to receive under £950 and first payouts next year.
- Following the Supreme Court decision, the court limited eligibility for compensation claims, ruling that hidden commissions were not unlawful but left open claims for large, unfair payments.
- In the Marcus Johnson case, the court found a 55% dealer commission to be a `powerful indication` of unfairness and awarded him the amount plus interest.
- The FCA noted that despite uncertainties, millions of motorists could still qualify, though many were excluded as lenders were not liable.
- The FCA will launch its consultation by early October, running it for six weeks, with first payments expected in 2026.
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What the FCA consultation means for eligibility on motor finance payouts
A compensation scheme to pay out drivers who were mis-sold car finance could cost up to £18bn, the UK’s financial watchdog has revealed.The Financial Conduct Authority (FCA) has announced plans to consult on a major redress scheme for motorists who may have unknowingly paid inflated borrowing costs due to undisclosed commission payments made to car dealers.These commissions, often hidden from customers, significantly increased the overall cost o…
·London, United Kingdom
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Total News Sources27
Leaning Left6Leaning Right2Center7Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 40%
C 47%
13%
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