FCA announces £8.2 billion car finance compensation scheme

14 million people in UK could be in line for an average payout of £700 for mis-sold finance

- Tom Jervis

THE Financial Conduct Authority (FCA) has announced an official redress scheme for the UK's car finance scandal, with 14 million people each in line for hundreds of pounds in compensation.

Confirmed following a consultation that began in August, the redress scheme is set to cost the industry £8.2billion. The FCA's chairman, Nikhil Rathi, said: “Many motor finance lenders did not comply with the law or the rules. Now we have legal clarity, it’s time their customers get fair compensation. Our scheme aims to be simple for people to use and lenders to implement.”