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Motor finance compensation wrangles continue
The Herald
|December 17, 2025
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.
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Nikhil Rathi, Financial Conduct Authority (FCA) chief executive, 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.
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