Published by Iain Gilbert on 2nd November 2025
(Sharecast News) - Victims of the car loans scandal could miss out on more than £4bn in compensation if the City regulator ploughs ahead with plans for an "insulting" interest rate in its redress scheme, consumer groups and claims firms say. The Financial Conduct Authority has been accused of offering a reduced rate of interest which will be added to compensation from banks for borrowers caught up in the car loan commissions scandal. Claims law firms and consumer groups say borrowers should be offered the same terms as Marcus Johnson: the sole driver whose case was upheld by the supreme court in a landmark case in August. While the terms of the final payout are sealed, Johnson is widely believed by industry experts to have received about 7% interest on his compensation package, after judges ordered the parties to negotiate a "commercial rate". - Guardian