Millions of drivers to get £700 compensation from car mis-selling scandal
Financial Behavior Authority (FCA), approximately 14 million unjust motor financing agreement, compensation payments, each £ 700, each of the an average of £ 700, he said.
The regulator had previously argued that drivers could get less than £ 950 per transaction, but now they can get less compensation than previously predicted.
Regulatory, motorized financial companies, lenders, the loan to the automobile vendors paying the commission paid to the customers as needed to inform the law or rules, he said.
Nikhil Rathi, the General Manager of FCA, said: “Many motor vehicle financing credit company did not comply with the law or rules.
“Now we have legal clarity, it is time for customers to receive fair compensation. Our program aims to be simple for the use of people and the application of loans.”
The FCA boss said that with a wide range of views about the compensation plan and time frame, everyone could not get what they want after the decision.
“We are aware that the program will be a wide range of views on how to calculate the scope, time frame and compensation,” he said. “In such a complex issue, not everyone will get everything he wants.
“However, we want to work together on the best possible plan and rapidly draw a line under this issue.
“This certainty is vital, so a reliable engine financial market can continue to serve millions of families every year.”
This came after FCA determined that many car buyers have been “too much wages”; This may mean that anyone who buys cars using a automobile financing plan before January 2021 may be entitled to compensation.
The reason for this is the ‘optional commission regulations’ made by some companies with the brokers and the authority to adjust the interest rates of customers in personal contracted purchasing (PCP) and rental purchasing agreements.
Since 90 percent of new cars purchased in the UK are purchased using motor financing, it is estimated that millions of people may need to be paid potentially after the Supreme Court’s decision.
The fact that these brokers earn more commissions than higher rates created an incentive to maximize the given rate. It was thought that 40 percent of automobile financing agreements were affected by this problem.
FCA has banned this practice since 28 January 2021, but a large number of “a large number of” people have come to the forefront to claim that more than the forbidden wages.
This is a breaking news, the more will come …
