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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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Oxford MailOxford Mail
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Martin Lewis gives update as 14 million drivers due £700 compensation payouts

Martin Lewis has updated drivers as 14 million are due £700 compensation payouts, under the UK financial watchdog’s proposed scheme.

·Oxford, United Kingdom
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  • 68% of the sources are Center
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ITV broke the news in London, United Kingdom on Tuesday, October 7, 2025.
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