US EditionMillions of people to get compensation payouts in 2026, FCA says
- In late March, the Financial Conduct Authority will publish final rules for a motor finance redress scheme, aiming to enable millions of motor finance customers across the UK to receive compensation in 2026.
- FCA findings show firms failed to properly disclose Discretionary Commission Arrangements, while brokers and car dealers increased interest rates for undisclosed commission despite a 2021 ban.
- After receiving over 1,000 consultation responses, the FCA proposes lenders get three months to pay redress, up to five months for older deals, with consumers notified within three months and able to accept offers immediately.
- The FCA warned the scheme could cost lenders about 11 billion, with some setting aside funds; consumers are advised not to use claims management companies.
- Average redress is expected to be about 700, with 11.2m agreements for DCAs, 3.2m for contractual ties, and 2.9m for unfair high commissions; FCA warns consumers to complain now.
23 Articles
23 Articles
Millions face longer wait for payouts under motor finance redress scheme plans
The FCA is set to give lenders a three-month implementation period to make redress, with up to five months for older agreements. Millions of people mis-sold car loans will have to wait longer for compensation payouts after the City watchdog revealed plans to give lenders more time to prepare for its redress scheme. The Financial Conduct Authority (FCA) is set to unveil the final rules for the scheme in late March but is likely to make several ch…
Car finance compensation scheme update will see 'millions of people' receive money this year
Drivers have been given an update from the nation's financial regulator on the future of the car finance scandal compensation scheme, which is expected to launch in the coming months.The Financial Conduct Authority (FCA) has been analysing over 1,000 responses to proposals laid out in relation to a redress scheme for motorists treated unfairly by lenders.It explained that it would look to make several changes to the proposed redress scheme based…
Millions of UK drivers could get £700 compensation in 2026 due to new FCA rules
The Financial Conduct Authority says it is likely to make several changes to the proposed £11 billion redress scheme after receiving more than 1,000 responses, but a final decision has not yet been made
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