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  "path": "/lifestyle/cars/car-finance-drivers-compensation-scheme-confirmed",
  "publishedAt": "2026-04-27T15:27:21.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Labour urged to scrap 'dishonest double taxation' as petrol and diesel face misery at pumps",
    "British drivers call for tougher parking fines to ensure a 'real deterrent' against rulebreakers",
    "Chinese brand BYD debuts world's fastest car and EV that charges in 5 minutes - 'Watershed moment'",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nMillions of drivers could soon be paid compensation for the car finance scandal as the industry confirmed that it would not challenge the regulator's redress scheme.\n\nThe Finance and Leasing Association has confirmed that it will not be mounting a legal challenge to the Financial Conduct Authority's compensation scheme.\n\n###\n\n\n\n\nThe UK regulator announced last month that it would introduce a compensation scheme for motorists impacted by the car finance scandal.\n\nIt estimated that 12.1 million agreements would be eligible for redress at a total cost of £9.1billion, or £829 per agreement.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nThere had been some fears that lenders and major banks would query the redress scheme over concerns that drivers were not receiving how much they should be owed.\n\nHowever, the FLA has confirmed that it will proceed with the compensation, highlighting the importance of motorists who have \"suffered loss\" from the scandal.\n\nShanika Amarasekara, chief executive of the FLA, described the scheme as being the \"right way\" to ensure that drivers receive suitable levels of redress.\n\nShe added: \"The FLA has undertaken a detailed review of the FCA's proposed scheme in close consultation with our members, alongside internal and external economists and legal counsel.\"\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\n\"We continue to have concerns about aspects of the scheme, but our priority is that a practical solution be reached that ensures timely compensation for consumers while giving the motor finance industry and the wider market clarity and finality on this issue.\"\n\nMs Amarasekara said it was the FLA's responsibility to consider the impact of the compensation scheme, given that it is the leading industry trade body.\n\nShe noted that the FLA would continue to \"engage constructively\" with the FCA to roll out the scheme effectively.\n\nSpeaking after the announcement of the redress scheme, Nikhil Rathi, CEO of the FCA, outlined that lenders and banks could start paying compensation as soon as they wanted.\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * Labour urged to scrap 'dishonest double taxation' as petrol and diesel face misery at pumps\n  * British drivers call for tougher parking fines to ensure a 'real deterrent' against rulebreakers\n  * Chinese brand BYD debuts world's fastest car and EV that charges in 5 minutes - 'Watershed moment'\n\n\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nHowever, he admitted that this was a very unlikely scenario as companies would want to look over the terms of the scheme and consider appealing against it.\n\nFCA guidelines suggest that the vast majority of car finance claims will be settled by January 2028, while some payments are expected to begin later this year.\n\nA short implementation period has been rolled out to ensure lenders and banks can prepare to pay back compensation to affected motorists.\n\nThis will be from June 30, 2026, for loans taken out from April 1, 2014. A second deadline for loans agreed earlier will end on August 31, 2026.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nTom Jervis, consumer reporter at Auto Express, said: \"Ultimately, it's only right that the finance industry has stepped aside to enable the FCA's proposed redress scheme to be executed as laid out.\n\n\"At its core, this is about compensating consumers who were mis-sold and the current plans will set about doing just that, whilst also making some concessions on behalf of the finance industry in order to protect it from irreparable damage.\"\n\nMr Jervis said he hoped that motorists would be protected from being overcharged on future policies as lenders try to recoup costs lost to the redress scheme.\n\nHe described this as being \"crucial\" as the majority of privately purchased vehicles are now done so through car finance.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Millions of drivers set for £829 payout soon as car finance compensation scheme confirmed"
}