Millions of drivers may be eligible for compensation following confirmation of widespread mis-selling of car finance deals. The regulator has outlined proposals for a redress scheme aimed at addressing the issue, and details are emerging about how consumers can potentially recover funds. Martin, in a special, urgent edition of the podcast, explains the key points consumers need to understand

The mis-selling relates to how discretionary commission payments were made to car dealerships when consumers took out finance agreements. These payments were not always clearly disclosed to customers, and it's alleged that this impacted the interest rates they were charged. The regulator's proposed redress scheme will determine how compensation is calculated and distributed. The amount individuals could receive varies depending on the extent of the mis-selling and the overpayments they incurred

While specific figures aren't yet available, the potential payouts are substantial, impacting a significant portion of car buyers in recent years. Consumers who believe they may have been affected are advised to gather relevant documentation, including finance agreements and payment records. The regulator is expected to release further details regarding the application process and eligibility criteria shortly