FCA ruling affects around 44% of buyers who took out finance agreements between April 2007 and November 2024
Around 12 million motorists who were mis-sold car finance are each in line for around £829 – with total payouts set to reach £7.5 billion.
The Financial Conduct Authority (FCA) set up the free-to-enter scheme to assist motorists who were denied the chance to see better finance deals, and potentially paid more for their loan than they needed to.
In total, 12.1 million finance agreements made between 2007 and 2024 will be eligible for compensation. That is fewer than the 14.2 million originally proposed by the FCA, which tightened the criteria in order to be fair to consumers and “proportionate” to firms.
But that means the average payout has increased from an expected £775. The FCA estimates around 75% of eligible motorists will make a claim, meaning total redress would be £7.5bn – costing the industry more than £9bn once costs are taken into account.
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