Millions of drivers will be entitled to a share of over £7.5 billion compensation after being missold car finance between 2007 and 2024
The Financial Conduct Authority has confirmed that firms will pay out around £7.5 billion
Around 12 million car finance agreements have been considered as unfair
The average payout amount will be around £829, according to the FCA
The FCA estimates that 75% of eligible consumers will make a claim. If so, total redress paid would be £7.5bn.
Nikhil Rathi, chief executive of the FCA, said: ‘We’ve listened to feedback to make sure the scheme is fair for consumers and proportionate for firms. It will put £7.5 billion back into people’s pockets.
‘Now we need everyone to get behind it and ensure millions get their money this year. Payouts should not be delayed any longer, especially as household bills come under greater pressure. Delivering compensation promptly also gives lenders the chance to rebuild trust, and means we can draw a line under the past and support a healthy motor finance market for the future.’
