Car finance mis-selling: Am I eligible for compensation, and what do I have to do to about claiming it?

Car finance mis-selling: Am I eligible for compensation, and what do I do?

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The Financial Conduct Authority (FCA) is in the advanced stages of determining whether a formal compensation process should be introduced for consumers who were unfairly sold car finance under now-banned commission models.

About 14 million car finance agreements could be due compensation under the UK financial watchdog's proposed redress scheme.

The FCA said many motor finance firms did not comply with the law or its rules when they sold car loans over approximately 17 years.

It means millions of motorists could be in line for compensation from their lender.

Here, we take a look into the scheme and what consumers can expect.

The watchdog was looking into data from around 32 million motor finance agreements made between April 6 2007 and November 1 2024, incorporating loans on a car, motorbike or van.

About 44 per cent of those will be considered unfair and will qualify for compensation under its proposals.