Car finance compensation payments explained
Image: BBC Business
Millions of drivers who were mis-sold car finance agreements must wait until at least 2027 to receive compensation, although some may be offered an early settlement.
Average payments of about £829 are expected under the rules published by the Financial Conduct Authority (FCA).
However, legal challenges to the scheme - which will be heard in February 2027 -mean compensation calculations and payments have been delayed.
The vast majority of new cars, and many second-hand ones, are bought with finance agreements. Customers pay an initial deposit to secure the vehicle, then a monthly fee with interest.
Compensation could be given to many of those who took out a car loan between April 2007 and November 2024.
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