FCA Estimates 12M Eligible for Car Finance Compensation

AI Summary

The FCA has revised its estimates, now indicating that 12 million individuals may be entitled to compensation from a car finance redress scheme, down from 14 million. The average payout is expected to be £829 per eligible claimant. This development follows the banning of discretionary commission arrangements (DCA) in 2021, which allowed dealers to charge higher interest rates without informing customers. The compensation scheme has received mixed responses, with some industry representatives claiming it is overly broad, while consumer advocates argue it falls short.