The next PPI? Why millions may be owed compensation for car finance

The Financial Conduct Authority has launched a review into car finance sales – could you be due a payout?

Car loan form
Experts say the compensation bill for car loans could be on scale of PPI payouts, which totaled more than £40 billion
(Image credit: Getty Images/krisanapong detraphiphat)

Millions of motorists who purchased vehicles with car finance could get big compensation payouts as a result of a newly launched review by the Financial Conduct Authority (FCA).

The FCA banned discretionary commissions on the sale of car loans such as Hire Purchase (HP) and Personal Contract Purchase (PCP) in January 2021. But the watchdog has received what it described as a "high number" of complaints from customers about car loan sales made prior to the ban. 

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Marc Shoffman is an NCTJ-qualified award-winning freelance journalist, specialising in business, property and personal finance. He has a BA in multimedia journalism from Bournemouth University and a master’s in financial journalism from City University, London. His career began at FT Business trade publication Financial Adviser, during the 2008 banking crash. In 2013, he moved to MailOnline’s personal finance section This is Money, where he covered topics ranging from mortgages and pensions to investments and even a bit of Bitcoin. Since going freelance in 2016, his work has appeared in MoneyWeek, The Times, The Mail on Sunday and on the i news site.