The Financial Conduct Authority (FCA) has launched a free-to-enter scheme that will provide average payouts of about £829 to roughly 12.1 million motorists mis-sold car finance, with total redress estimated at £7.5 billion.
The FCA tightened eligibility from an initial 14.2 million to 12.1 million finance agreements made between 2007 and 2024 to make the scheme proportionate. The regulator estimates around 75% of eligible motorists will claim, and that industry costs will exceed £9 billion once administration is included.
The scheme is intended to compensate motorists who were denied the opportunity to access cheaper finance and may have overpaid on loans. The FCA described the arrangement as free-to-enter so affected consumers can recover payments without charge.
Read the full article at autocar.co.uk.
More automotive news: Latest car news