Car finance agreements taken out between 6 April 2007 and 1 November 2024 where commission was payable by the lender to the broker will be considered for compensation under the FCA’s final plans.
But these will be split into two separate schemes…
One will cover deals from 6 April 2007 to 31 March 2014 and the other will cover deals from 1 April 2014 to 1 November 2024.
Millions of drivers in car finance scandal in line for £829 in compensation
Millions of drivers who were mis-sold car finance agreements are due to get £829 on average in compensation, with payments starting this year, the Financial Conduct Authority has announced.
Around 12.1 million car finance agreements are eligible for compensation – down from the 14 million deals that were expected to be covered.
Motor finance agreements taken out between 6 April 2007 and 1 November 2024 where commission was payable by the lender to the broker will be considered for compensation.
The FCA believes that the average compensation payout will be £829 per agreement – up from its original estimate of around £700.
Firms are expected to pay out around £7.5bn in redress, down from £8.2bn at consultation, it adds.
The estimated total bill to firms is down from £11bn to £9.1bn.
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