Summary
The Financial Conduct Authority (FCA) will announce the final rules for a compensation scheme for drivers who were mis-sold car finance in the UK. This scheme affects 14 million finance agreements, with expected average compensation of about £700 per agreement. The process could face delays if lenders or claims management companies legally challenge the FCA's decision.
Key Facts
- The FCA will reveal the final rules for a car finance compensation scheme.
- The scheme involves 14 million motor finance agreements made between April 2007 and November 2024.
- Average compensation is expected to be around £700 per agreement.
- The compensation relates to mis-sold car finance and unfair commission arrangements.
- The FCA's plan aims to avoid court battles, but some drivers may pursue legal claims for higher payouts.
- The scheme is estimated at over £8 billion, with an additional £3 billion in administrative costs for lenders.
- A Supreme Court ruling in August limited the scope of potential cases.
- Lenders and claims management companies have 28 days to challenge the FCA's decision in court.
