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Nearly three million savers and car buyers could be eligible for compensation totaling up to £18 billion after a Supreme Court decision partially backed a regulator’s proposal for redress relating to hidden commissions in car finance deals.
The ruling means the Financial Conduct Authority (FCA) is now consulting on an industry-wide scheme, with payouts starting in 2026.
Consumer advocates have welcomed the move, calling it a historic step for financial rights, as many affected individuals may have unknowingly paid excessive fees or commissions.
The FCA has also warned claims management companies about misleading advertisements and urged compliance with new guidelines to prevent consumers being misled.
The aftermath of the ruling is likely to drive significant changes in transparency and oversight across the car finance and consumer credit sectors.




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