Millions of motorists could be in line for compensation payouts over car finance deals. Those who purchased vehicles on finance between 2007 and 2021 could be affected.
This means they could have number plates ranging from 07/57 up to 21/71. Compensation payouts could be worth up to £950, experts predict. Drivers with cars bought before those dates are being urged to check details of their finance agreements now. It relates to customers being mis-sold commission in car finance deals.
The Financial Conduct Authority has confirmed it would begin a compensation programme, and payouts could come next year. In other related news, anyone buying fuel next week given '£15 charge' warning by The AA.
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Payments are likely to be lower than originally hoped, however it's estimated around 40% of Brits who entered personal contact purchase or hire purchase agreements between 2007 and 2021 may get money, reports Birmingham Live.
While most people are advised to wait for now, drivers should lodge a complaint with your bank or finance firm if you believe you've been treated unfairly. Money Saving Expert has launched a tool and support guide to help motorists check here.
Imran Malek, corporate sales manager at DrivingExperience.com, said: "This is set to be one of the biggest consumer payouts in UK history, but drivers need to be smart. Don't waste money on claims firms who'll take a hefty slice – the FCA has been clear that compensation will be free. Instead, start gathering any paperwork from old finance deals now."
He added: "And while you can log a complaint with your lender today if you want to, many cases may be paused until the FCA scheme begins. While most payments won't be life‐changing – usually a few hundred pounds – they're sums people are entitled to, and across millions of drivers it adds up to billions. Taking a few simple steps now means you'll be ready when the scheme opens. "
Rhydian Jones, a motoring expert at Confused.com, said: "The scale of this issue is worrying, and it shows what can happen when people aren't given clear, upfront information about the cost of borrowing."
"Although some might have hoped for more, the FCA suggests most compensation will likely be under £950. This could still help ease financial pressure."
He explained: "We encourage anyone with past or current finance agreements to check the terms and seek advice if anything feels off. Drivers deserve clear and honest support when navigating their finances and big life decisions."
