Million Car Finance Borrowers Face Reduced Compensation Claims

The UK Supreme Court has ruled that lenders no longer have to pay compensation to millions of car finance borrowers. The decision reverses a lower court’s ruling, which found that car dealers had a duty to act in the interests of buyers when selling cars on finance. This means that large-scale claims for compensation are likely to be reduced.

One case study showed a successful claimant receiving compensation, but others are concerned. Martin Lewis, a consumer expert, advises borrowers not to take action until a potential redress scheme is established by the Financial Conduct Authority. The FCA has announced it will quickly decide on a plan before Monday morning.

Source: https://www.bbc.com/news/live/cqjy087n9j2t