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Car Finance Compensation Update as Millions of Drivers Could Get £700 This Year
The Financial Conduct Authority expects lenders to pay an estimated £11 billion to compensate roughly 14 million motorists mis-sold car finance deals by the end of 2026.
- The FCA expects to publish final rules in late March and will confirm the date in advance, Martin Lewis said, quoting the regulator's update.
- By not disclosing commission arrangements, brokers could inflate interest rates and deny consumers bargaining power, as motor finance firms and lenders breached FCA rules by hiding dealer commissions.
- The FCA said it expects to publish final rules soon; the scheme could cover 14 million deals with average payouts of about 700 and 518 for DCA loans, costing about 11 billion pounds to lenders.
- If approved, lenders would be given a three-month implementation window, extending to five months for older agreements, and consumers who already complained would be told their compensation within three months and could accept or challenge it.
- Banks including Santander and Lloyds Banking Group have pushed back and set aside funds, while the FCA advises consumers to complain now and avoid claims management companies that may take over 30% of awards.
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Martin Lewis warns 'you'll be told' as millions of Brits to get £700 this year
Money Saving Expert Martin Lewis says anyone who has already applied will be told how much compensation they can get by end of 2026, with average payments of £700 for car finance mis-selling
·United Kingdom
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Coverage Details
Total News Sources13
Leaning Left3Leaning Right1Center7Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
L 27%
C 64%
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