Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleThe Financial Conduct Authority (FCA) has indicated that compensation payouts for approximately 14 million unfair motor finance deals could commence next year. Customers could receive an average of about £700 per deal, though this is less than previous estimates from the regulator. Motor finance firms failed to properly inform customers about commission paid by lenders to car dealers, leading to potential overcharging. This issue stemmed from 'discretionary commission arrangements' where brokers could adjust interest rates, incentivising higher rates for increased commission. The FCA outlawed this practice from January 2021, and its chief executive, Nikhil Rathi, is aiming for a simple and fair compensation scheme for those affected. In fullMillions of drivers to get £700 compensation from car mis-selling scandalThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
About 14 million people set to get payouts over car finance scandal
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleThe Financial Conduct Authority (FCA) has indicated that compensation payouts for approximately 14 million unfair motor finance deals could commence next year. Customers could receive an average of about £700 per deal, though this is less than previous estimates from the regulator. Motor finance firms failed to properly inform customers about commission paid by lenders to car dealers, leading to potential overcharging. This issue stemmed from 'discretionary commission arrangements' where brokers could adjust interest rates, incentivising higher rates for increased commission. The FCA outlawed this practice from January 2021, and its chief executive, Nikhil Rathi, is aiming for a simple and fair compensation scheme for those affected. In fullMillions of drivers to get £700 compensation from car mis-selling scandalThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
