Millions of drivers to receive £700 compensation verdict from today

A verdict on the scheme is set for this afternoon

This comes as the Financial Conduct Authority (FCA) is expected to publish today (Monday, 30 March) its final decision on the matter which should detail the payout scheme for 14 million motor finance agreements.

These payouts will cover millions of deals made between April 2007 and November 2024 with the average compensation set to be around £700 per deal.

The FCA previously estimated 44% of all motor finance agreements made from 2007 to late 2024 would be eligible for payouts, totalling more than £8bn.

This could have totalled tens of billions of pounds more if a Supreme Court ruling in August didn't limit the reach of these cases.

You may have been mis-sold finance if your agreement had a discretionary commission arrangement, a high rate or commission, or a contractual tie that you were not properly told about.

This said, lenders and claims management companies could still mount a legal challenge which will extend the wait time for victims.

The payouts relate to commission arrangements between lenders and dealers, unfair contracts and inaccurate information given to car buyers.

The scheme set up by the FCA would mean that those able to claim would not need to go through court themselves, although some drivers may do so in search of highest compensation.

The FCA has urged people who may be affected to put in a complaint to the lender that provided the car finance.

Craig Tebbutt, a financial health expert for Equifax UK, said: “It has previously been estimated that average compensation levels could be in the region of £700 per agreement but the final details around the scale, scope and timelines are expected to be confirmed on Monday.

“However, there is nothing to stop consumers checking their paperwork now and getting their details ready in the meantime.”