Millions of victims of car finance mis-selling could receive less compensation than previously estimated, under plans from the regulator.

The Financial Conduct Authority (FCA) said payouts could result from 14 million motor finance agreements between April 2007 and November 2024.

The regulator previously suggested motorists could receive less than £950 per deal, but it now says the average will be about £700. Lenders could pay out £8.2bn in compensation.

The payouts are over commission arrangements between lenders and dealers, unfair contracts, and inaccurate information given to car buyers.

“It’s time their customers get fair compensation,” Nikhil Rathi, chief executive of the FCA, said.

“We recognise that there will be a wide range of views on the scheme, its scope, timeframe and how compensation is calculated. On such a complex issue, not everyone will get everything they would like.”

The scheme would be free to access for consumers.

A ruling at the Supreme Court in August limited the breadth of these cases.

The vast majority of new cars, and many second-hand ones, are bought with finance agreements.

About two million are sold this way each year, with customers paying an initial deposit, then a monthly fee with interest for the vehicle.

In 2021, the FCA banned deals in which the dealer received a commission from the lender, based on the interest rate charged to the customer. These were known as discretionary commission arrangements (DCAs) and meant drivers were at risk of overpaying for the loan.

Other car buyers had an unfair contract because the commission paid to the dealer was so high, and some were not given accurate information about getting the best finance deal.

The regulator has now proposed a scheme to compensate drivers who were subject to these arrangements. If it gets the go-ahead, once the scheme starts:

• lenders will contact those who have already complained. If they don’t hear back after one month, lenders will assume they should look at the case and pay compensation if appropriate
• those who have already complained before the scheme gets up and running are likely to receive compensation faster
• those who have not complained will be contacted by their lender within six months of the scheme starting. People will be asked if they want to opt in to the scheme to have their case reviewed. They will have six months to decide
• those motor finance borrowers who do not receive a letter, for example because lenders no longer have their details and cannot trace them, will have a year from the scheme starting to make a claim

The regulator admitted that consumers can choose not to take part in the FCA’s compensation scheme and instead go to court, where they may get more or less compensation, based on the facts of their case.

Last Updated:October 07, 2025, 20:43 IST

The nine per cent projection for 2026 marks a slight increase from the actual 8.9 per cent salary growth observed in 2025, even as global economic growth slows, as per survey

The 30th edition of AON’s ‘Annual Salary Increase and Turnover Survey 2024-25 India is based on inputs from 1,060 organisations across 45 industries. (AI generated image)

Salaries in India are likely to rise by 9 per cent next year, on the back of resilient consumption, investment and policy support despite global economic growth uncertainties, a survey said on Tuesday.

The nine per cent projection for 2026 marks a slight increase from the actual 8.9 per cent salary growth observed in 2025, even as global economic growth slows, according to global professional services firm AON’s ‘Annual Salary Increase and Turnover Survey 2025-26 India.

Despite headwinds, India’s economy remained resilient, supported by strong domestic consumption, investments and policy measures, it noted.

The 30th edition of AON’s ‘Annual Salary Increase and Turnover Survey 2024-25 India is based on inputs from 1,060 organisations across 45 industries.

Further, its survey stated that salary increases are projected to vary across industries, with real estate/infrastructure (10.9 per cent) and non-banking financial companies (10 per cent) seeing the highest increases in 2026.

The automotive or vehicle manufacturing is expected to witness 9.6 per cent salary growth, followed by engineering design services (9.7 per cent), retail (9.6 per cent) and life sciences (9.6 per cent), reflecting continued investment in critical talent pools.

“India’s growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading the way in talent investment and businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty,” said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions for India at Aon.

Further, the survey revealed that overall attrition rates have declined to 17.1 per cent in 2025, down from 17.7 per cent in 2024 and 18.7 per cent in 2023.

This gradual decline points to a more stable talent landscape, with organisations experiencing improved employee retention, it stated.

As the workforce becomes more settled, companies are well-positioned to invest in targeted upskilling and development programmes, ensuring they can build a resilient talent pipeline and prepare for future business needs, according to the survey.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

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Reform UK treasurer Nick Candy’s company is seeking millions in damages from a technology start-up which claimed to be the “next Facebook” following a “clear and straightforward case of fraud”, the High Court has been told.

Candy Ventures Sarl (CVS), a portfolio of companies founded by Mr Candy, is taking legal action against Dutch businessman Robert Bonnier over allegations he “lied” to “deceive” it into investing around 7.5 million euro (£6.5 million) in Aaqua BV, which he directs.

Mr Candy, who was announced as Reform’s treasurer in December last year, owns 90% of CVS.

Barristers for the company told a trial on Tuesday that Mr Bonnier claimed Apple and LVMH Moet Hennessy Louis Vuitton (LVMH) were set to invest one billion US dollars in Aaqua, and as a result, CVS swapped shares in podcasting firm Audioboom for “worthless” shares in Aaqua.

It is asking a court to rescind the investment or order Mr Bonnier and Aaqua to pay £5.7 million in damages.

Mr Bonnier is representing himself at trial and in August was blocked from defending the claim for breaching court orders, with barristers for CVS telling the court he was “restricted to attendance and making oral submissions” and was “not allowed to advance any factual case”.

He has told the court that while he “overstated the prospects of an investment” into Aaqua, he did not believe CVS would “rely” on it.

In written submissions for the trial in London, Jonathan Nash KC, for CVS, said: “In late 2020/early 2021, Mr Bonnier lied to CVS, time and again, both orally and in writing, to deceive it into investing in his company, Aaqua.

“He told CVS that he had discussed Aaqua with two of the world’s biggest names, Apple and LVMH, and believed that they would invest in the company.”

He continued: “In fact, and as Mr Bonnier well knew, none of that was true.”

He added: “As a result of his flagrant fraud, CVS, like other sophisticated investors, was duped into investing in Aaqua.”

Mr Nash told the court Aaqua, which is now insolvent, was established in the Netherlands in 2020 to develop a “new social media software application”.

Mr Bonnier is claimed to have told Mr Candy and Steven Smith, CVS’s executive director, that Apple and LVMH were set to invest in Aaqua, which Mr Smith told the court was “completely fundamental” to CVS’s decision to invest.

Mr Candy met Mr Bonnier in Dubai in January 2021.

Mr Nash claimed Mr Bonnier said he personally knew Apple chief executive Tim Cook and LVMH chairman Bernard Arnault, and told Mr Smith that Aaqua would be the “next Facebook”.

CVS agreed in February 2021 to transfer 1.5 million shares in podcasting firm Audioboom to Aaqua, worth around £6.5 million.

It also agreed to purchase 15,000 Aaqua shares, which were believed to be worth around 7.5 million euro (£6.5 million), but Mr Nash said the value of these was “false and artificial, induced, as it was, by Aaqua and Mr Bonnier’s fraud”.

Following this, Mr Bonnier told Mr Candy on WhatsApp that Apple’s investment was “a foregone conclusion”, but the investment never occurred, Mr Nash said.

Mr Nash said by the summer of 2022, “CVS’s patience had run out”, and when Mr Smith asked Mr Bonnier about the situation, he responded that he was “simply no longer comfortable talking about founder partner relationships”, with legal proceedings being launched that year.

The barrister said Mr Bonnier had since said he had only met Mr Cook once, in 1999, and only met Mr Arnault at “large social gatherings”, adding Mr Bonnier knew his claims were false and “intended to mislead” CVS.

The court was told Mr Bonnier claims he did not believe that Apple and LVMH’s supposed investment caused CVS to invest, which Mr Nash denied.

Mr Nash said in court that Mr Bonnier claims he did not say Apple and LVMH were involved, and “all he did was express his aspiration that he could get Apple and LVMH on board”.

But the barrister said the businessman “went much further than that”, stating: “What was said and what was said dishonestly, and what was highly material to my client’s view of this investment, was that there were active discussions with Apple and LVMH which could reasonably be expected to lead to investment.”

In written submissions, Mr Bonnier admitted “selling his aspirations for Aaqua very enthusiastically, and occasionally perhaps going too far in those efforts”.

But he said he had a “proven track record of ‘pulling off the impossible’ and creating substantial value for shareholders”.

He said: “However, it was always understood that ultimately the claimant would form their own independent views on whether the founder’s vision would be achieved.”

The Dutchman also said CVS had “expressly stated and agreed that it would conduct its own diligence on the specific point of the likelihood of an investment” by Apple and LVMH.

He continued: “The claimant suffered no loss as a result of its investment; any loss it did suffer was brought about by the claimant’s own actions.”

The trial before Mr Justice Bright is set to conclude later this week.