"The payouts would be less than previously expected, but announcing the plans for compensation on Tuesday, the Financial Conduct Authority (FCA) said that lenders could be landed with an 8.2bn compensation bill, though it could go as high as 9.7bn. The City regulator's long-awaited proposals for a compensation scheme cover millions of motor finance agreements taken out between April 2007 and November 2024."
"This relates to the alleged large-scale mis-selling of car loans involved in the payment of secret commissions to car dealers, and millions of car buyers unknowingly paying more for their finance than they should have. Launching a consultation, the FCA said that based on the number of consumers it estimated could take part in the scheme, lenders could be landed with an 8.2bn compensation bill, although it could go as high as 9.7bn."
Up to 14 million consumers who took out UK motor finance between April 2007 and November 2024 could be eligible for compensation averaging about £700 per agreement. The Financial Conduct Authority has launched a consultation proposing a scheme that could require lenders to pay around £8.2bn, potentially up to £9.7bn. The alleged misconduct involves secret commissions paid to car dealers that led many buyers to pay more for finance. The FCA previously estimated most individuals will probably receive less than £950 per agreement and earlier warned total costs could be substantially higher.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]