More than 23m Britons think they may be due compensation for mis-sold car loans, UK poll finds | Financial sector

According to a survey before the Supreme Court decision of this month, more than 23 million people believe that there may be compensation for a wrong -sold car loan.

Borrowers, banks and government are worried about the decision to trigger one of the biggest correction plans since 50 billion pounds of payment protection insurance (PPI). PPI Saga forced the British banks to compensate for people who often bought worthless insurance cover.

The survey for consumer law firm Slater and Gordon found that 45% of the people think that they may have the right to pay through a car finance plan taken between 2007-2021.

Car loans have been on a scandal for more than a year, but in October, when a Court of Appeal Court has greatly expanded the investigation of a financial behavior authority (FCA) investigation for potentially harmful commission regulations.

The commission of the commission and the conditions of the car sellers regulating the borrowers without explaining that a secret commission determined that payment is illegal.

According to some analysts, lenders, including Santander UK, Close Brothers, Barclays and Lloyds, are potentially hooked up to 44 billion pounds.

FCA is working on a possible compensation scheme of lenders to check the records of the wrong -sold loans and who will decide who will receive compensation.

According to the survey, the public expectations of compensation are high.

4.000 of the 4,000 people who participated in the survey believed that they could be entitled to get back money, which was equal to more than 23 million adults throughout England. Forty percent, said they would consider a legal challenge if they are not satisfied with the outcome of their claims. Consumers also trusts the ability of banks and lenders to control and distribute compensation for records.

Some consumers also have concerns that they may miss because Most banks clean customer data after six years. The FCA ordered the lenders to stop doing so in January 2024, when they launched the investigation, but the files related to customers related to contracts that ended more than six years ago may have already been lost.

Slater and Gordon’s chief business officer Elizabeth Comley, said the public is expected to be compensated for the losses, he said.

“FCA wants to correct things, but there is a risk that a correction plan will disappoint many people and will be willing to challenge the process,” he said.

“This kind of reaction would be bad for everyone – the scandal would drag for years, the courts would be filled with difficulties and the public would be rejected.”