News · 3 July 2026
Car finance payouts delayed until 2027 after legal challenge
Unsplash / Liviu C.
Millions of UK drivers mis-sold car finance deals will now wait until at least 2027 for compensation, as the financial watchdog's scheme faces legal challenges. The Financial Conduct Authority (FCA) has paused payouts after four companies argued its rules are unlawful. This means lenders don't need to calculate or pay compensation for about 12.1 million eligible agreements, with an average payout of about £829.
Reported by BBC · How we write briefs