FCA warns on car finance payouts

The Financial Conduct Authority has warned UK drivers that a planned car finance redress scheme may not proceed following a series of legal challenges.

The watchdog told motor finance firms to prepare for a scenario where no compensation is paid at all, leaving millions of claims in limbo.

The uncertainty follows a court ruling that has complicated the legal basis for the proposed payouts.

Consumer advocates have expressed outrage, stating that millions of people who were overcharged for car loans deserve justice.

The FCA is expected to provide a final decision on the scheme's future later this year.