Story perspectives

FCA to Compensate 14 Million Drivers for Mis-Sold Car Finance

3/30/2026

Summary

Story summary

The Financial Conduct Authority (FCA) will announce compensation rules for mis-sold car finance affecting 14 million drivers.
Average payouts are around £700 for loans taken between April 2007 and November 2024.
The scheme should be implemented by early 2026, but lenders' legal challenges could delay it.
The compensation arises from undisclosed commission arrangements and unfair contracts.
The industry has set aside billions for payouts, and drivers should contact their lenders.

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Story summary

The Financial Conduct Authority (FCA) will announce compensation rules for mis-sold car finance affecting 14 million drivers.
Average payouts are around £700 for loans taken between April 2007 and November 2024.
The scheme should be implemented by early 2026, but lenders' legal challenges could delay it.
The compensation arises from undisclosed commission arrangements and unfair contracts.
The industry has set aside billions for payouts, and drivers should contact their lenders.