The Financial Conduct Authority (FCA) is ordered to partially suspend its car finance compensation scheme, which is intended to make payments to motorists affected by mis-sold car finance agreements. Multiple outlets report that the suspension delays payouts for millions of drivers who were expected to receive compensation.
The Guardian says the FCA is halted from proceeding with parts of a scheme described as worth £9.1bn while legal challenges are heard. It adds that the FCA previously expected payments to begin this year, with an average award of about £830 per eligible consumer.
The Mirror and Daily Record report that drivers may now have to wait until at least next year to receive compensation. They cite the FCA’s earlier estimate that around 12.1 million unfair motor finance deals could lead to payments averaging roughly £829 each.
Across coverage, the dispute centres on the FCA’s compensation plan in response to concerns that some car finance products were mis-sold, including allegations related to commission arrangements between lenders and car dealers over the period spanning 2007 to 2024.
