The financial regulator has said that a compensation scheme for drivers on wrong sale of car loans may cost up to £ 18bn.
The Supreme Court on Friday ruled that the commission hidden on car loans from lenders to dealers was not illegal, which means millions of motorists would not be able to claim.
However, the verdict especially abandoned the possibility of compensation claims for large commissions, which the Supreme Court said they were unfair.
After the ruling, the Financial Conduct Authority (FCA) has stated that it will consult on running a payment plan – the cost between £ 9BN and £ 18BN is estimated to be a cost.
It states that “Most individuals will probably receive less than £ 950 in compensation”, if the scheme proceeds, the first payment is expected next year.
Those who have already complained do not need to do anything, the FCA said, advised those who have not yet complained to contact their car loan providers instead of using a claim management company.
