Motorists could begin receiving compensation for PCP finance claims straight away, according to Nikhil Rathi, head of the Financial Conduct Authority (FCA). He emphasised that, now the rules have been clarified, there is effectively nothing preventing lenders from starting payouts immediately if they are ready to do so.
This follows the FCA’s redress scheme announced in late March, designed to help drivers recover money from potentially mis-sold PCP agreements taken out between April 2007 and November 2024, particularly where hidden commission structures were applied without clear customer awareness.
Under the scheme, the average compensation payout is estimated at around £829 per motorist, with up to 12 million PCP agreements potentially affected across the UK. While Rathi acknowledged that some claims could be processed and...