UK car finance: ‘millions of drivers could get payout’ as watchdog investigates

FCA to examine whether consumers have been charged inflated loan rates on new and secondhand cars

• What is the FCA looking into and will people get money back?

Millions of drivers could be in line for a payout, it has been claimed, after the UK financial watchdog opened an investigation into whether consumers had been unfairly charged inflated prices for loans on new and secondhand cars.

The Financial Conduct Authority said on Thursday that it had decided to examine whether a compensation scheme was needed to deal with alleged large-scale mis-selling in the £50bn-a-year motor finance sector.