23 million believe they may be owed compensation ahead of supreme court ruling

More than 23 million people in the UK believe that they can be entitled to compensation for in advance of financing, according to a new survey, as it leads the country to the prominent Supreme Court decision, which can open tens of billions of recession.

The survey, which was conducted on behalf of the Consumer Lawyer, Slater and Gordon, found that 45 % of the UK adults believe that they may be due to compensation for a car loan seized between 2007 and 2021. Possible repercussions have brought comparisons with the PPI, which resulted from more than 50 pounds in payment For consumers.

The auto financing controversy focuses on the “Secret Committee” arrangements between the lenders and car dealers – the deals in which the intermediaries are received by an unannounced commission payment to arrange car loans. In many cases, these models motivated the mediators to push borrowers towards the most expensive financing packages, which exaggerates the costs without the customer’s knowledge.

The scandal escalated in October 2023, when the Court of Appeal ruled that the undeclared commissions were illegal, which led to the expansion of the FCA. Lessers including Santander UK, Barclays, LLOYDS and close brothers can face collective obligations of 44 billion pounds, according to some analysts estimates.

FCA has been working on the recession scheme since January 2024, according to which lenders will examine historical contracts to determine the eligibility of compensation. However, concerns are escalating on lost customer records – many banks have routinely deleted data over six years old, which means that claims dating back to the early years of the affected period may be more difficult.

Slater and Gordon survey also reveals widespread general doubts about whether lenders can be trusted to oversee the compensation process. 40 % of the respondents said they are considering taking legal action if it is not satisfied with the result of their demand.

Elizabeth Komley, CEO of Operations at Slater and Gordon, warned that unless the recession plan is seen as fair and comprehensive, he risks confusion in legal challenges:

“FCA is trying to put things in its right quorum, but there is a danger that the retestation scheme leaves many people disappointed and keen to challenge the process. This type of reaction will be bad for everyone – the scandal will continue for years, the courts will be immersed, and the public will be deprived of the clear decision they want.”

With the expectation of the Supreme Court ruling this month, industry, organizers and consumers are preparing for both the most important provisions of consumer financing in modern memory. If the court supports the previous ruling, it can pave the way for a wave of claims – and another assigned account for banks in the United Kingdom.