Car finance mis-selling payout scheme could be worth billions, says FCA
Financial regulator, incorrectly sold car loans drivers to pay a compensation plan to pay £ 18 billion, he said.
The Supreme Court decided that lenders were not responsible for the secret commission payments in automobile financing plans.
The two lenders, the Firstrand Bank and Close Brothers objected to a Court of Appeal as part of the financial arrangements made before 2021 – without the driver’s fully informed consent.
After the decision of the Supreme Court, most of the requests will not be suitable for compensation only the most serious claims. When the Supreme Court cannot fully approval, a significant decrease of £ 18 billion is a significant decrease in £ 45 billion.
Nikhil Rathi, General Manager of Financial Behavior Authority (FCA), said, “It is clear that some companies have violated our laws and rules. It is fair to compensate for customers. In addition, we want to ensure that the market, which is trustworthy by millions of people every year and to make a fair agreement,”.
The regulator said that the final cost of the plan would depend on the latest design, which would make it difficult to predict.
“FCA does not think that the cost of the plan, including running, will be much lower than £ 9 billion,” he said. “And in some scenarios, it may be up to £ 18 billion, but FCA does not believe that they are most likely. As some analysts predict, the total cost in the range is more reasonable.”
Individuals are expected to receive less than £ 950 in compensation.
The consultation for payments will be launched in early October and the first payments will be made in 2026.
FCA, those who have already complained that they do not need to do anything more, and anyone who believes that they are not said about the commission and believes that they can pay too much now that they should complain now.
FCA warns that consumers do not need to use a request management company or law firm for request.
Rathi’s testimony, “Our goal is a fair and easy -to -participation plan, so there is no need to use a request management company or law firm. If you do, you will cost you a significant portion of the money you receive.
“It will take time to create a plan, but we hope to start buying the money they owe next year.”
