A compensation scheme To pay the drivers who were wrong-bought car loans Financial regulator Where are you
Lakhs of drivers were refused to pay on Friday Supreme Court Ruled him Lenders are not responsible For payment of commission hidden in Car finance plans,
Two lenders, Furtrand Banks and close brothers appealed challenged the court that the payment of the “Secret” Commission paid the car dealers as part of the finance system made before 2021 – the motor driver was illegal – without the fully informed consent of the motor driver.
After the Supreme Court’s decision, the wholesale of claims will not move forward, only the most serious claims are eligible for compensation. The £ 18BN figure is a significant decline from £ 45bn if the Supreme Court ruled.
“It is clear that some firms have broken the law and our rules. It is appropriate to compensate for their customers. We also want to ensure that the market can continue to work well by millions of people every year, and consumers can get a proper deal,” said Nikhil Rathi, Chief Executive Officer of Financial Conduct Authority (FCA).
The regulator said that the final cost of the plan would depend on its final design, making it difficult to estimate properly.
“FCA feels that it is unlikely to cost the plan, including running it, will be much less than £ 9 billion,” it is said in a statement. “And this may be more, in some scenarios up to £ 18 billion, although FCA does not assume that it is most likely. As a forecast by some analysts, the total cost midway in the border is more admirable.”
Individuals are predicted to receive less than £ 950 in compensation.
Consultation for payment is scheduled to be launched by the beginning of October, with the first payment to be made in 2026.
Those who have already made complaints do not need to do anything further, the FCA said, and anyone who believes that they were not told about the commission and believe they can be paid a lot.
The FCA has warned that consumers do not need to use a claim management company or law firm for claims.
“Our aim is a compensation scheme that is appropriate and easy to participate, so a claim is not required to use a management company or law firm. If you do, it will spend you a significant part of any money,” it is said in Mr. Rathi’s statement.
“It will take time to install a plan, but we hope that next year people will start receiving any money.”
