UK Car Loan Compensation Scheme Finalized
Analysis based on 8 articles · First reported Mar 27, 2026 · Last updated Mar 30, 2026
The compensation scheme is expected to cost the financial and automotive industries in the United Kingdom £11 billion, directly impacting lenders and car finance providers. Millions of consumers will receive an average of £700 in compensation, potentially boosting consumer spending.
The United Kingdom — Financial Conduct Authority has published its final plans for an industry-wide compensation scheme for millions of motorists in the United Kingdom who were mis-sold car loans. The scheme covers car finance agreements made between April 6, 2007, and November 1, 2024, with an estimated 14 million deals being unfair. Consumers are expected to receive an average of £700 per agreement, totaling an estimated £11 billion in costs for the industry. The United Kingdom — Financial Conduct Authority has made some changes to its initial proposals, including giving lenders more time to contact customers and streamlining the process to allow for immediate acceptance of redress. Equifax UK has launched a car finance checker app to assist motorists in determining their eligibility for compensation.
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