Millions of motorists overcharged for car finance will have to wait until next year for settlements – with consultation on a proposed compensation scheme worth up to £18bn not due to launch until October.
The Financial Conduct Agency announced the development this afternoon after a Supreme Court ruling on Friday – but said it would ‘take time to establish a (compensation) scheme’.
The FCA estimates ‘most individuals will probably receive less than £950 in compensation’ per claim, with the total value of the scheme between £9bn and £18bn. Some individuals who bought several cars via hire purchase could receive multiple payouts.
Officials said they hope ‘to start getting people any money they are owed next year'.
In the meantime, the watchdog urged people to wait rather than taking action via a claims management company or law firm as it could ‘cost you a significant chunk of any money you get’.
