Watchdog Estimates £18 Billion in Payouts for Mis-sold Auto Finance

October 6, 2025 - 06:05

The financial watchdog has raised eyebrows with its estimate that motorists who were mis-sold auto finance could receive payouts amounting to a staggering £18 billion. This figure has sparked significant concern among lenders, who argue that the estimate is excessively high and may not accurately reflect the realities of the market.

Lenders contend that the methodology used to arrive at this figure does not take into account various mitigating factors, such as the actual number of affected consumers and the potential for claims to be settled without substantial payouts. They assert that the complexities of auto finance agreements and the specific circumstances surrounding each case must be considered before arriving at such a sweeping conclusion.

As the debate continues, the implications of this estimate could be far-reaching, potentially affecting lending practices and consumer trust in the auto finance sector. The financial community is closely monitoring the situation, as any changes in policy or regulation could reshape the landscape of auto financing in the UK.