Car finance compensation plan 'completely impractical', warns trade body

Published: 8/4/2025
Car finance compensation plan 'completely impractical', warns trade body
Car finance lenders consider the finance redress plan "impractical" as the Supreme Court ruling on hidden commissions in car loans deems them not unlawful. The redress scheme could cover loans dating back to 2007, but concerns arise regarding lack of paperwork from both firms and customers for that time period. The Financial Conduct Authority (FCA) will start a consultation in October to decide eligibility and compensation for victims of car finance mis-selling, cautioning against using claims management companies for potential compensation.