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LONDON DAILY ARCHIVE

UK FCA Proposes £9–18 Billion Redress Scheme for Motor Finance Mis-Selling

Compensation expected for millions affected by improper commission models

03 August 2025 · 23:30 UTC

The UK’s Financial Conduct Authority has proposed a redress scheme worth between £9 billion and £18 billion to address widespread mis-selling in the motor finance sector.

The plan follows an industry review that uncovered improper commission arrangements, and is expected to offer compensation to millions of affected car buyers.