Millions in line for payouts from £18bn car loan compensation scheme

City regulator says motorists should start to get payments in 2026 with most payouts likely to be under 950'

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Millions of drivers could be handed a share of a multibillion-pound compensation package after the City regulator said it would open a redress scheme for consumers affected by the car finance scandal.

The Financial Conduct Authority (FCA) will consult on the redress scheme, which could cost banks between 9bn and 18bn when it begins paying consumers compensation next year.