How Hidden Car Loan Fees Came Back to Bite UK Banks: QuickTake

Banks and car manufacturers have set aside billions of pounds to refund UK buyers of car loans who were unlawfully charged hidden commissions for years.

The long-standing practice of lenders paying car dealers to sell their loans to motorists came to a halt after a series of court rulings that also paved the way for refunds to millions of customers.

Following a ruling from the Supreme Court in August, regulators at the Financial Conduct Authority established a redress scheme whereby lenders were told they would need to pay £8.2 billion ($10.8 billion) to wrongly charged customers. The program is set ...