Could I get car finance compensation?
Summary
A recent court ruling means that car buyers who used finance in the last 18 years might get compensation if they were misled about commission fees. The Financial Conduct Authority (FCA) is setting up a scheme to handle claims, but payments will not start until 2026. Customers are advised to wait for the FCA scheme instead of using claim companies that charge fees.Key Facts
- A court decision involves hidden commissions paid to car dealers on finance deals.
- Eligible car buyers may get compensation if they were overcharged or misinformed.
- The FCA is developing a compensation plan, with consultations starting in October.
- Payments from the compensation scheme are expected to begin in 2026.
- People are advised not to use claims companies, as they charge fees without speeding up the process.
- Commissions that were excessively high in finance agreements are a key factor in eligibility.
- Marcus Johnson's court case was a benchmark, as he found 55% of his payments were commissions.
- The maximum expected claim is likely around £950, plus some interest, depending on individual contracts.
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