The Financial Conduct Authority plans a redress scheme for car finance consumers affected by a recent scandal, with compensation expected to range from £9 billion to £18 billion. Individuals might receive less than £950 in compensation, as estimated total costs suggest significant financial implications. The FCA will consult on broader motor financing issues alongside the compensation scheme, which includes those harmed by discretionary commission arrangements. A recent supreme court ruling has reinforced the unfairness endured between lenders and borrowers, thus driving the need for these regulatory actions.
Drivers impacted by the car finance scandal could receive between £9 billion and £18 billion in compensation, according to the Financial Conduct Authority's plans for a redress scheme.
The FCA is set to launch consultations by October to detail a compensation scheme for consumers affected by unfair financing practices and discretionary commission arrangements.
The compensation for most impacted individuals is expected to be less than £950, reflecting the estimated total costs of the scheme projected by the regulator.
A recent supreme court ruling upheld a case highlighting an unfair relationship between lenders and borrowers, influencing the current redress efforts initiated by the FCA.
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