All articles tagged with #compensation scheme
The FCA announced a consultation on a compensation scheme for motor finance customers affected by non-compliance with disclosure rules regarding dealer commissions, following a Supreme Court ruling that certain undisclosed commissions could be unlawful. The scheme aims to fairly compensate affected customers, with payments possibly starting in 2026 and an estimated total cost between £9 billion and £18 billion.
Victims of car finance mis-selling are expected to receive less than £950 per deal through a proposed compensation scheme by the FCA, with the first payouts anticipated next year. The Supreme Court ruled that hidden commissions from lenders to dealers were not unlawful, but left open the possibility for claims related to large commissions deemed unfair. The FCA plans to consult on eligibility and payout amounts, covering agreements from 2007 onwards, with the industry expected to bear the costs.
The Financial Times discusses the concept of compensation schemes masquerading as asset classes, highlighting the potential risks and challenges associated with such investments. The article emphasizes the need for investors to exercise caution and conduct thorough due diligence before considering these schemes as viable investment options.