Millions of UK Motorists Eligible for Compensation Under New Car Finance Redress Scheme
The UK’s Financial Conduct Authority (FCA) has announced the launch of a new redress scheme designed to provide compensation to millions of motorists affected by poor practices in the car finance industry. According to the regulator, drivers who believe they have been unfairly charged interest or other fees may be entitled to a payout.
The FCA’s scheme, which was first proposed in 2019, aims to address problems identified in the car finance market, including high levels of interest charged and aggressive sales tactics. To be eligible for compensation, drivers will need to demonstrate that they were unfairly charged interest or fees by submitting evidence to support their claim.
Drivers who are eligible for compensation under the scheme will be contacted directly by the FCA. However, for those who suspect they may be affected but have not received a notification, the regulator has provided guidance on how to apply. Motorists can submit an application by writing a letter stating their claim, including details of their account and any evidence they have to support their case.
To apply for compensation under the scheme, drivers must write to the FCA’s Consumer Queries team, including all relevant information and evidence. The regulator has stated that it will not accept applications that are incomplete or do not include sufficient evidence to support the claim.
According to the FCA, the scheme will consider claims from drivers who took out car finance deals between 2016 and 2017. Those who believe they may be eligible for compensation are advised to act quickly, as the scheme is set to close on a specific date.
It is estimated that millions of drivers could be eligible for compensation under the scheme, with the FCA stating that it has already contacted over 10,000 motorists directly with information about how to apply.
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