FCA willing to consider adjustments

THE UK’s financial watchdog is prepared to adjust its proposed motor finance compensation scheme after hearing from more than 1,000 businesses and consumers, its boss has told MPs.

- ANNA WISE Press Association

Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said some lenders have so far been “very focused on things they don’t like” about its proposals.

The FCA’s consultation opened on October 7 and closed on December 12, and invited feedback to its plans for an industry-wide compensation scheme.

The regulator is hoping to compensate motorists who were unfairly sold a car loan between 2007 and 2024 because they were not properly informed about the commission paid to brokers, including car dealers.

Under the current proposals, about 14 million car finance deals could be eligible for compensation, with people estimated to get an average of £700 per agreement.

The scheme is expected to be launched early next year.