The FCA has issued an update on compensation payments for people who were mis-sold car finance as it clarified how many people are expected to be paid and how much they could get.

Around 30 million people could be eligible for compensation under the UK financial watchdog’s motor finance redress scheme, its boss has said, while pay-outs for those who were mis-sold commission on car loans are expected to be worth hundreds of pounds.

It comes after a landmark Supreme Court ruling over whether motor finance firms complied with rules related to commission paid by lenders to dealers selling car loans.

Two lenders, FirstRand Bank and Close Brothers, went to the UK’s highest court to challenge a Court of Appeal ruling which found “secret” commission payments paid by buyers to car dealers as part of finance arrangements made before 2021 without the motorist’s fully informed consent were unlawful.

Full Article – Car finance update as FCA issues clarification on compensation payments for millions – Manchester Evening News