Story perspectives

FCA Finalizes £11 Billion Compensation for Mis-Sold Car Loans

3/28/2026

Summary

Story summary

Financial Conduct Authority (FCA) is finalising a compensation scheme for millions of consumers mis-sold car loans, with average payouts around £700.
The scheme is expected to cost lenders about £11 billion and has drawn backlash from the lending sector.
About 30,000 Lloyds Banking Group customers plan to pursue a £66 million lawsuit, fearing undercompensation by the FCA's scheme.
The FCA advises consumers to check past agreements for potential compensation.

History

Historical Context

The Financial Services Act of 2012 established the Financial Conduct Authority (FCA) to enhance consumer protection in the UK financial sector, replacing the Financial Services Authority. Since its inception in 2013, the FCA has faced challenges, including a £11 billion compensation scheme for mis-sold car loans, echoing past issues like the PPI crisis, and highlighting ongoing regulatory concerns within the banking industry.

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Story summary

Financial Conduct Authority (FCA) is finalising a compensation scheme for millions of consumers mis-sold car loans, with average payouts around £700.
The scheme is expected to cost lenders about £11 billion and has drawn backlash from the lending sector.
About 30,000 Lloyds Banking Group customers plan to pursue a £66 million lawsuit, fearing undercompensation by the FCA's scheme.
The FCA advises consumers to check past agreements for potential compensation.

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