Motorists back early car finance settlement offers
A new survey has found that 89% of motorists expecting compensation for being mis-sold car finance would like an offer rather than waiting for legal challenges to conclude.
About 14 million motorists could be due compensation as part of the Financial Conduct Authority’s redress scheme.
Average payments are expected to be around £800 but are not expected to begin until late next year. However, some lenders have now said they will offer motorists early settlements.
New research has revealed that 89% of car finance customers would support this, with 77% saying that receiving compensation sooner would make a great deal or fair amount of difference to their financial situation. The FCA has said it would back early settlements ‘as long as customers are offered no less than they would receive through the scheme.’
Stephen Braviner Roman, FCs general counsel and co-lead on the motor finance project, said: “Fair settlement offers could result in some people getting money sooner. It’s clear they want the choice. Anyone who wants to wait can, and there’s no obligation to agree to the offer. We’ll closely monitor firms making offers and expect them to be clear what accepting an offer means.”
The Finance and Leasing Association said: “Where firms believe they can make settlement offers that provide consumers with no less than they would receive under the FCA’s redress scheme, it is understandable that they may choose to make settlement offers before the legal process has concluded.
“The FLA wants to see consumers receive the fairest outcome in as timely a way as possible and recognises that, in some cases, that may point to early settlement, while in others it may be appropriate to await greater legal certainty.”
