Up to 14m car loan scandal victims in line for average £700 payout, FCA says
The FCA estimates compensation averaging £700 per deal for 14 million UK drivers over undisclosed commissions that inflated car finance costs since 2007.
- The Financial Conduct Authority announced a compensation scheme for car buyers affected by unfair finance agreements, potentially costing lenders £8 billion in payouts.
- Affected individuals could receive approximately £700 on average per agreement under the proposed scheme set to begin next year.
- The FCA's scheme is set to cover motor finance agreements from April 6, 2007, to November 1, 2024, where commission was improperly disclosed by brokers or dealers.
- Nikhil Rathi, chief executive of the FCA, emphasized that many lenders did not comply with the law and acknowledged the need for fair compensation for affected customers.
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68 Articles
How UK expats in Spain can claim £700 from the car finance scandal
If you ever bought a car on finance while living in the UK – even if you’ve since moved to sunny Spain – there’s big news you should know. Millions of drivers could soon get compensation averaging £700 each, after Britain’s financial regulator confirmed details of a major car finance mis-selling scheme. And yes, UK expats are included – as long as your car loan was arranged in the UK. So, what’… Source
Martin Lewis says people can hope to get £700 in their bank accounts if they do this one thing
The Financial Conduct Authority (FCA) announced 14 million car finance deals included a discretionary commission arrangement (DCA) in the loan contract, which people were unaware of, and may entitle you to compensation
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