1M UK car finance customers lodged complaints over potential DCAs mis-selling, with FCA estimating £480M in compensation.

1 million people in the UK submitted complaints to MoneySavingExpert.com about potential car finance mis-selling, using a tool that helps users lodge complaints. The complaints focus on possible overcharging due to discretionary commission arrangements (DCAs), which were banned by the Financial Conduct Authority (FCA) in 2021. The FCA estimates that 40% of car finance deals were affected by DCAs, and the average payout per driver could be £1,100. Based on these numbers, at least £480 million is anticipated to be repaid to motorists in compensation this year.

March 11, 2024
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