Experts Urge Immediate Claims for £7.5bn UK Car Loan Compensation Scheme
Following the launch of a new industry-wide compensation scheme to address the UK's car finance scandal, experts and regulators are urging motorists to file claims immediately to secure their place in the queue. The Financial Conduct Authority (FCA) has established two distinct schemes covering motor finance agreements from 2007 to November 2024, with a total payout pool of approximately £7.5 billion. Eligible consumers will receive compensation based on undisclosed commissions or unfair interest rate adjustments, with average payouts rising to £829 per agreement. The scheme specifically targets three categories of mis-selling: discretionary commission arrangements, contractual ties, and unfairly high commissions. Lenders, typically banks, are responsible for funding these redress payments, which will be free for consumers to claim.
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Experts Urge Immediate Claims for £7.5bn UK Car Loan Compensation Scheme
Following the launch of a new industry-wide compensation scheme to address the UK's car finance scandal, experts and regulators are urging motorists to file claims immediately to secure their place in the queue. The Financial Conduct Authority (FCA) has established two distinct schemes covering motor finance agreements from 2007 to November 2024, with a total payout pool of approximately £7.5 billion. Eligible consumers will receive compensation based on undisclosed commissions or unfair interest rate adjustments, with average payouts rising to £829 per agreement. The scheme specifically targets three categories of mis-selling: discretionary commission arrangements, contractual ties, and unfairly high commissions. Lenders, typically banks, are responsible for funding these redress payments, which will be free for consumers to claim.
The Guardian