Overview
- The Financial Conduct Authority, which will publish its final rules after markets close Monday, is set to confirm how mass compensation for mis-sold car loans will work.
- Draft proposals cover agreements from April 6, 2007 to November 1, 2024, with about 14 million deals judged unfair and average redress near £700 at a total industry cost around £11 billion.
- Under the expected timetable, firms get three months to set up the scheme, up to five months for older loans, then up to three months to tell people who have already complained if they are owed money, with many payments due in 2026.
- The process is being simplified so eligible drivers can accept offers immediately, and the FCA urges people to claim directly rather than use claims firms that can take large fees.
- Lenders are preparing for big hits, with Ford’s FCE Bank lifting its provision to £155 million and Lloyds near £2 billion, while some providers dispute the approach and experts warn the rollout could face delays due to the scheme’s scale and old paperwork.