Millions of drivers who were mis-sold car finance agreements will have to wait until at least 2027 to see a penny of compensation, the Financial Conduct Authority (FCA) has announced, because nothing says 'consumer protection' like a multi-year delay followed by a legal circus.

Average payouts of £829 are expected under the FCA's proposed scheme, which covers about 12 million car loans taken out between April 2007 and November 2024 - roughly 40% of all such loans during that period. The total tab, including administrative costs, could hit £9.1bn.

The FCA banned discretionary commission arrangements (DCAs) in 2021, where dealers got a commission from lenders based on the interest rate charged - a practice that gave dealers a financial incentive to screw you on the rate. But legal challenges from three lenders - Volkswagen Financial Services, Mercedes-Benz Financial Services, and Credit Agricole Auto Finance - have now gummed up the works, meaning no compensation will be paid until the UK's Upper Tribunal hears the case, either in December or February next year. The FCA says it will 'defend the scheme robustly,' which is regulator-speak for 'we'll see you in court, probably in 2027.'

For those who haven't complained yet, the FCA urges contacting your lender directly - not a third-party claims company that might take 30% of your payout, as FCA boss Nikhil Rathi noted on BBC's Today programme. Meanwhile, Consumer Voice says the scheme leaves 'too many people short-changed,' and scammers are already circling, posing as lenders offering fake compensation. So, in summary: drivers wait years, lawyers get rich, and the only thing moving quickly is the scam artists.