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UK lenders could owe £8.2bn in car finance compensation, FCA consultation shows

( October 7, 2025, 16:36 GMT | Official Statement) -- MLex Summary: UK lenders could owe £8.2 billion in compensation for inadequate disclosures in car finance agreements, assuming about 85 percent of consumers take part in a proposed redress scheme, a consultation opened by the country's financial watchdog showed on Tuesday. The Financial Conduct Authority estimates that 14 million loans have been "unfair" and that customers would receive around £700 per agreement. Under the FCA proposal, the compensation program would cover regulated car finance agreements taken out between April 6, 2007 and November 1, 2024. The consultation on the compensation redress scheme closes on Nov. 18.Consultation paper is attached...

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