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UK Carmakers Face £3bn Compensation Demand Over Finance Scandal

4/19/2026

Summary

Story summary

UK carmakers must raise £3bn for compensation scheme tied to motor finance scandal.
The Financial Conduct Authority says carmakers, including Ford and BMW, underestimated costs, with £803m set aside of £9.1bn bill.
The scheme covers mis-sold loans from 2007 to 2024, with payouts around £830.
Mercedes-Benz has allocated £424m, while Volkswagen and Ferrari have not set aside funds.
Lenders have until April 27 to challenge the FCA's plan, delaying payouts.

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Story summary

UK carmakers must raise £3bn for compensation scheme tied to motor finance scandal.
The Financial Conduct Authority says carmakers, including Ford and BMW, underestimated costs, with £803m set aside of £9.1bn bill.
The scheme covers mis-sold loans from 2007 to 2024, with payouts around £830.
Mercedes-Benz has allocated £424m, while Volkswagen and Ferrari have not set aside funds.
Lenders have until April 27 to challenge the FCA's plan, delaying payouts.