In this day and age, one should never look a gift horse in the mouth, especially if that gift horse is served with an ounce of justice. In this case, along with justice, there will be £700 for 14 million drivers. That’s right, if you sought motor finance deals between the qualifying dates, you too could be eligible for the most-welcome £700 payout. Find out what the particulars of these payouts are today. You never know, you and your gift horse could be laughing all the way to the bank much sooner than you think.
The motor finance deals that led to a potential payout
According to a report by Money Week, millions of drivers unknowingly signed up for motor finance deals. Motor finance companies were caught breaking laws and regulations after keeping vital information concealed about motor finance deals they sold to customers. The Financial Conduct Authority (FCA) is presently establishing a compensation scheme for all drivers affected by this event.
According to the chief executive of the FCA, Nikhil Rathi:
“Many motor finance lenders did not comply with the law or the rules. Now that we have legal clarity, it’s time their customers get fair compensation. Our scheme aims to be simple for people to use and lenders to implement.”
FCA predictions indicate that nearly 14 million drivers were potentially affected, which means there could be £8.2 billion in compensation obtainable from lenders. As a result, there will be payouts of £700 for 14 million drivers. Will you also qualify for these most-welcome payouts?
There will be payouts of £700 for 14 million drivers
You will qualify for the motor finance compensation scheme if commission was payable by you to the broker and you took out a motor finance deal between the following dates:
- 6 April 2007 and 1 November 2024
If you fall in the abovementioned category, you are recommended to submit a complaint to your lender, but only if you have not already done so. A template letter of complaint can be found on the FCA’s website, which you may use to file formal complaints to motor finance companies.
If you plan on putting the £700 in a banking account, you should take note of the confirmed £175 bonus from Nationwide. There are three simple rules and three accounts to choose from. The next step is to understand when you can expect your gift horse and serving of justice.
This is when you can expect your gift horse
Once the FCA’s scheme is in practice, customers who have already complained will be contacted by the lenders. Those who have already submitted complaints before the scheme is live will receive their compensation much quicker, according to the FCA. If you have not filed a formal complaint, your lender should contact you within six months of the scheme’s implementation.
You have one year to file a claim for compensation after the scheme’s implementation. If you wait any longer, you will miss out on the £700.
As you await hearing from your motor finance company regarding the scheme, we recommend researching other potential compensation schemes as well, such as the Samsung and iPhone compensation, with £480 million on the table. The FCA added that consultations on the proposed scheme have been launched, offering consumers and motor finance companies the opportunity to provide feedback.
For those who are still undecided about the motor finance compensation, the amount is pretty decent. While it may not buy you a literal horse, it will help you to settle overdue bills, to afford some essentials, or even a more-than-decent meal. Just ensure that you are fully informed of all the requirements and protocols when applying for the £700 compensation. For more information regarding the motor finance compensation scheme, please visit the Financial Conduct Authority website.
Disclaimer: You should not submit false or inflated claims under penalty of perjury, as class‑action claim forms historically required declarations signed “under penalty of perjury” to ensure authenticity. Submitting a fraudulent claim not only carries legal exposure—including potential civil and criminal sanctions—but also harms other eligible class members by diluting the available settlement pool.
