Around 12 million British car owners will receive compensation (the average payment is expected to be around £829) for being tricked into taking out car finance incorrectly between April 2007 and November 2024
An announcement awaited for years by millions of British motorists. There Financial Conduct Authority (FCA) has in fact established that approximately 12.1 million car owners will be entitled to a refund after being tricked into taking out loans incorrectly between April 2007 and November 2024. The average compensation will be around £829 (approximately 950 euros at the exchange rate of 31 March 2026) for each contract deemed eligible for reimbursement, with banking institutions therefore having to pay out an amount of approximately 9.1 billion pounds (10.5 billion euros). To provoke the intervention of Fca they were various elements of ambiguity regarding commissionswith customers paying high prices without their knowledge or contracts being sufficiently clear. The British Supreme Court had already expressed its opinion on this scandal, ruling in favor of the banking institutions and limiting the possibility of compensation: before this ruling, reimbursements of up to 44 billion had in fact been hypothesized.
who will be entitled to compensation
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As already mentioned, approximately 12.1 million people will be entitled to compensation from credit institutions. To obtain a refund, the customer who signed the contract must not have been informed of one of the following elements:
