OVER 30million drivers could be due compensation over mis-sold car finance loan, the boss of the financial regulator has said.
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said: “During the period that we’re looking it – from 2007 through to approximately 2020 – there are around 30 million agreements… and all of those will be eligible for compensation.”
“One of the things that we are looking at very closely is what the scope of the scheme will be.”
Mr Rathi told a group of MPs on the Treasury Committee that the FCA was consulting on an industry-wide compensation scheme because there was “evidence that there have been unfair relationships between lenders and their consumers”.
He added that a “large number of consumers were not properly informed” about the interest rate on their motor finance deal.
The consultation is due to be launched by early October, Mr Rathi said, adding: “We hope that compensation, where it is due, can start to be paid next year.”