The UK’s Financial Conduct Authority (FCA) is launching a consultation on a redress scheme to guide lenders on how to compensate motor finance customers who were mis-sold car loans. The estimated cost of the scheme could be as high as £18 billion, but lower figures are more likely. This announcement comes after a recent court ruling that reduced the worst-case compensation amount for banks, which will likely impact their liability under the redress scheme.
Source: https://www.bloomberg.com/news/articles/2025-08-03/fca-says-banks-may-face-at-least-9-billion-bill-on-car-loans