The Financial Conduct Authority (FCA) has proposed compensation schemes that could see firms pay around £7.5 billion in redress for historic motor finance agreements. Approximately 12.1 million agreements may be eligible for consideration under these schemes.
The regulator estimates an average redress of £829 per agreement. The total cost, encompassing compensation and administrative expenses, could reach about £9.1 billion.
A consumer awareness campaign, fronted by Nick Knowles for Mis-Sold Expert, is encouraging drivers to understand the full cost and terms of car finance agreements. Phil Thorpe, Lead Claims Handler at Mis-Sold Expert, advises drivers to check the type of finance, total amount payable, and whether they will own the car at the end.
The FCA's proposed schemes cover agreements entered into between 6 April 2007 and 31 March 2014, and those between 1 April 2014 and 1 November 2024.