Car finance compensation should be paid next year

Car finance payouts have been limited, but lenders aren't off the hook

Car finance judgement 'a hard pill to swallow'

The payouts are over commission arrangements between lenders and dealers, and inaccurate information given to car buyers following a ruling

While a Supreme Court decision limited the breadth of these cases, up to 30 million agreements between 2007 and 2020 could be reviewed.

The Financial Conduct

Giving evidence to MPs on the Treasury Committee, Nikhil Rathi, chief executive of the FCA, said details of the scheme were still being worked through, such as whether claimants would need to opt-in or be included automatically.

"It will be pragmatic, proportionate and fair to all sides," he said.

The FCA said claimants were likely to get less than £950 per deal.

Following the recent court cases, those eligible are likely to include:

But he added that not all firms involved were being cooperative with the regulator as it planned the compensation scheme.

He was pressed

During the huge compensation scheme that followed the payment protection insurance (PPI) scandal, the regulator's awareness scheme featured the robotic head and voice of Terminator star Arnold Schwarzenegger.

Fewer people will be eligible under motor finance mis-selling compensation scheme, but it is still likely to cover millions of drivers.