Wendy Chamberlain MP calls for swift compensation for those mis-sold car finance 

Wendy Chamberlain, Scottish Liberal Democrat deputy leader and MP for North East Fife, has urged the Government and the Financial Conduct Authority (FCA) to work together to swiftly deliver a compensation scheme that will see lenders who mis-sold car finance deals “make up for their actions”. This comes after the financial watchdog announced a consultation this week on a possible compensation scheme.

The news comes after a landmark Supreme Court ruling opened the possibility of compensation for particularly large car finance commissions, which judges said were unfair. Car buyers may also be entitled to payouts if their dealer had secretly hiked the interest rate on their car loan through what is known as a “discretionary commission arrangement” (DCA).

This week the financial watchdog the Financial Conduct Authority said it will launch a consultation in early October to determine what a potential compensation scheme might look like. It said that “If the compensation scheme goes ahead, the first payments should be made in 2026.”

The UK’s largest car finance lender, Lloyds Bank, had previously set aside £1.2bn to cover compensation claims.

Several people in North East Fife have been impacted by the scandal, including Roy who said:

“The FCA and Treasury should be standing up for consumers, not protecting lenders who have taken victims like me for a ride.

“The UK Supreme Court was clear - many millions of people deserve their money back and I think they deserve it now. I’m grateful that I had Courmacs Legal fighting for my rights and trying to get answers from the lenders who ripped me off.

“Thousands of motorists in Fife need answers and accountability. These unfair lending practices should never have happened and compensation now needs to be swiftly delivered to everyone who has been wronged.”

Wendy Chamberlain MP added:

“Last week’s Supreme Court ruling is a victory for consumers, paving the way for billions of pounds in compensation to those unfairly ripped off.

“For too long, lenders had been able to get away with charging eye-watering and unfair commission on car finance deals.

“I hope that the Government and the financial watchdog will now work together so that those affected can get the compensation they are owed as quickly as possible.

“It’s only fair that big finance firms make up for their actions.”