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The Guardian - UK
The Guardian - UK
Business
Lauren Almeida

UNCOVERED: Fca ordered to partly suspend car finance compensation scheme | History Defined

Closeup of a line-up of white and grey cars including a Mercedes and BMW, with other makes and models in the background, seen through a grid of posts and flagpoles which gives a geometric and semi-abstract effect.
Drivers were overcharged for loans as a result of commission payments between lenders and car dealers between 2007 and 2024. Photograph: Murdo MacLeod/The Guardian

The UK’s financial watchdog has been forced to partly suspend its £9.1bn car finance compensation scheme, delaying payouts for millions of motorists.

The Financial Conduct Authority had expected the scheme would start paying out £830 on average this year to those affected by the motor finance scandal, in which drivers were overcharged for loans as a result of commission payments between lenders and car dealers between 2007 and 2024.

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