Drivers are being urged to get ready for compensation under the car finance mis-selling scandal, with millions potentially in line for pay outs as part of a Financial Conduct Authority (FCA) redress scheme due to launch in 2026.
Imran Malek, Corporate Sales Manager at DrivingExperience.com, warns drivers that simple steps taken now could make all the difference when the scheme opens.
The issue dates back to car finance deals taken out between 2007 and 2021. During this time, many car dealers and brokers were allowed to set the interest rate on loans and earn themselves a bigger commission if they charged customers more. Crucially, drivers were not told this was happening. The FCA banned the practice in 2021, but millions of motorists are thought to have paid over the odds before the ban.
Now, the FCA bosses have confirmed the scheme will follow a Supreme Court ruling. Estimates suggest millions of drivers could be eligible for compensation worth as much as £950 per agreement.
Imran says: "This is set to be one of the biggest consumer pay outs in UK history, but drivers need to be smart. Don't waste money on claims firms who'll take a hefty slice – the FCA has been clear that compensation will be free. Instead, start gathering any paperwork from old finance deals now. And while you can log a complaint with your lender today if you want to, many cases may be paused until the FCA scheme begins."
DrivingExperience's top tips for motorists
Imran concludes: "While most payments won't be life-changing – usually a few hundred pounds – they're sums people are entitled to, and across millions of drivers it adds up to billions. Taking a few simple steps now means you'll be ready when the scheme opens."
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