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Martin Lewis explains car finance compensation as millions could get £700 payout
Martin Lewis has explained who is affected by the UK’s car finance scandal and how people can claim a payout.
Millions of victims of the UK’s car finance scandal are set to receive an average £700 due to car loan mis-selling, starting next year - but the payout is lower than previously thought.
The Financial Conduct Authority (FCA) had suggested motorists could receive less than £950 per deal as part of a redress scheme that would have cost lenders between £9bn and £18bn.
But now the regulator says the average payout is expected to be £700 per agreement, with lenders faced with a £8.2bn compensation bill. Around 14 million motor agreements taken out between April 6 2007 and November 1 2024 will be due a payout.
