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FCA Announces £700 Average Payout for Car Loan Mis-Selling

10/8/2025

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Summary

Story summary

The Financial Conduct Authority (FCA) says car loan mis-selling payouts will average £700, below £950.
About 14 million motor finance agreements (April 2007–November 2024) are eligible; payouts begin in 2026.
The scheme aims to simplify access and cut lenders’ legal costs; total cost is £11 billion.
Payouts include 2.09% interest; over 4 million complaints have been filed.

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Story summary

The Financial Conduct Authority (FCA) says car loan mis-selling payouts will average £700, below £950.
About 14 million motor finance agreements (April 2007–November 2024) are eligible; payouts begin in 2026.
The scheme aims to simplify access and cut lenders’ legal costs; total cost is £11 billion.
Payouts include 2.09% interest; over 4 million complaints have been filed.