UK Says Lenders Face £8.2 Billion Bill on Missold Car Loans (1)

The UK’s Financial Conduct Authority said it now expects some of the country’s biggest auto lenders will spend £8.2 billion ($11 billion) to compensate customers who were missold car loans.

Getting the refund program up and running will cost lenders another £2.8 billion, bringing the total cost to £11 billion, the FCA said. That’s lower than the midpoint of a range the watchdog previously provided.

“Many motor finance lenders did not comply with the law or the rules,” Nikhil Rathi, chief executive of the FCA, said in the statement. “Now we have legal clarity, it’s time their customers get ...