When a consumer has been treated unfairly, compensation should surely be based on one simple principle: putting them back into the position they would have been in had the wrongdoing not occurred.

Listen to this article

What shouldn’t determine the figure is how painful paying that compensation might be for the company responsible.

Yet that’s now at the heart of an extraordinary row over Britain’s motor finance scandal.

The Financial Conduct Authority’s proposed redress scheme is expected to cover around 12 million car finance agreements and cost the industry approximately £9.1 billion.

Average compensation is estimated at around £700 per agreement.

But Consumer Voice, which is challenging the FCA’s approach in the High Court, alleges the........

© LBC