Despite last week’s damning Supreme Court ruling millions of drivers could end up receiving compensation from the car finance scandal.
Last week the Supreme Court ruled that lenders are not liable for any hidden commission payments for the financing of cars.
The Financial Conduct Authority (FCA) has announced that they will set out a compensation scheme as they want to ensure there is “clarity and certainty” for customers who buy vehicles.
The FCA will investigate to “ensure the integrity” of the motor finance market and they will focus on fairness.
The FCA is estimating the total compensation will be more than £9 billion and it could be as high as £18 billion.
The FCA are estimating that most will “probably receive less than £950” in compensation.
Nikhil Rathi, chief executive of the FCA said, “It’s fair for their customers to be compensated. We also want to ensure that the market, relied on by millions each year, can continue to work well, and consumers can get a fair deal.
Our aim is a compensation scheme that’s fair and easy to participate in, so there’s no need to use a claims management company or law firm. If you do, it will cost you a significant chunk of any money you get.
