US EditionDrivers Could Claim Hundreds for Car Finance Mis-Selling – some May Have Multiple Payouts (Aff)
Some drivers could be owed hundreds of pounds, and motorists with multiple finance deals may have several claims, consumer experts said.
- Millions of UK drivers may be eligible for compensation following the Financial Conduct Authority's launch of a £9.1 billion redress scheme for mis-sold car finance deals involving hidden commission.
- Dealers historically inflated interest rates through discretionary commission arrangements, a practice the Supreme Court ruled an "unfair relationship" in the landmark Johnson case, where commissions reached 55% of credit charges.
- Kevin Durkin, director of HD Law, warned of a "smash and grab" by lenders and noted the FCA's "Value Gap" departs significantly from Supreme Court findings on what consumers are legally owed.
- The FCA's 39% threshold may cost drivers more than £1,000 each, while HD Law's legal action secured clients an average of £1,800—more than double the FCA's average £829 payout under the scheme.
- Agreements before March 31, 2014, may not be covered by the automated process and require manual review; experts recommend using an independent agreement finder and checking for waivers before accepting compensation.
23 Articles
23 Articles
Knutsford Guardian
Northwich GuardianCheshire drivers warned of missing out on £1k compensation from car finance scheme
Drivers could be missing out on over £1,000 in compensation.
Fife Today
Drivers could claim £100s for car finance – some owed multiple payouts
Millions of drivers may have overpaid for car finance before 2021, and those with multiple agreements could be owed more
Falkirk Herald
Drivers could claim hundreds for car finance mis-selling – some may have multiple payouts (aff)
Millions of drivers may have overpaid for car finance before 2021, and those with multiple agreements could be owed more
Lloyds sticks with £1.9bn set-aside for motor finance redress scheme
Lloyds Banking Group is sticking with its £1.95bn funds total to allow for the recently announced motor finance compensation scheme announced by the Financial Conduct Authority. The company had originally set aside £1.15bn for the redress scheme but added another £800m in October last year to being the total to £1.95bn. In a statement it said: “Further to the recent FCA announcement on the final rules for an industry wide redress scheme for moto…
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