Car finance mis-selling payout scheme could cost billions
Summary
A compensation plan for mis-sold car loans might cost up to £18 billion. The Supreme Court decided that hidden fees paid by lenders to car dealers were not illegal, but it left room for claims against very large fees. The Financial Conduct Authority (FCA) will manage the compensation scheme.Key Facts
- A compensation scheme for car loan mis-selling could cost £9 billion to £18 billion.
- The Supreme Court ruled that hidden commissions on car loans are not unlawful.
- Millions of car owners cannot claim compensation for these hidden fees.
- The court did allow for compensation claims if commissions are particularly large and unfair.
- The Financial Conduct Authority (FCA) will run the payout scheme.
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