Over 70 public figures have signed an open letter calling for the Windrush compensation scheme to be moved from Home Office control to an independent body. The letter highlights the scheme's failures, including over half of claimants receiving no compensation, and urges for free legal aid and a public inquiry.
Sir Alan Bates has described the UK government's compensation schemes for victims of the Horizon IT scandal as an "utter disaster," citing their complexity and legalistic nature. He argued that an independent body, not the government, should run such schemes to ensure fair outcomes for subpostmasters who have lost trust in the system.
A Westminster inquiry heard that the UK's Windrush compensation scheme is failing survivors, with nearly 60% of claims denied. Windrush commissioner Clive Foster urged for funded legal support, comparing it to schemes for Post Office Horizon and infected blood scandal victims.
The FCA is facing four legal challenges to its £9.1bn compensation scheme for motor finance scandal victims. Consumer group Consumer Voice and lenders Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance are contesting the programme, which would pay borrowers an average of £830 each for loans mis-sold through commission payments between lenders and car dealers from 2007-2024. The regulator said it will defend the scheme "robustly" as the "fastest, simplest route for consumers", but the legal actions create uncertainty for millions of borrowers and could delay payouts expected to begin this summer.
Consumer Voice is launching legal action against the Financial Conduct Authority over its car finance compensation scheme, arguing the £829 average payout is insufficient. The consumer group warns millions of motorists mis-sold car finance agreements could be left out of pocket by several hundred pounds per claim. Payouts were due to start this summer but the legal challenge to the upper tribunal would delay them.
Consumer Voice has launched a legal challenge against the Financial Conduct Authority's £9.1bn car finance compensation scheme, warning it leaves too many drivers short-changed. The challenge could delay payments to millions of customers who were overcharged through hidden discretionary commission arrangements banned by the FCA in 2021. The regulator defended its scheme as the quickest and fairest way to compensate consumers.
Consumer Voice is preparing to challenge the FCA in court over its £9.1bn compensation scheme for victims of the UK car loan scandal, arguing the average £830 payout per victim is too low. The group, partnering with Courmacs Legal, claims the regulator gave excessive weight to banks' concerns over compensation size rather than consumer protection. If filed before the April 27 deadline, it would be the first time a consumer group challenges the FCA over a compensation scheme in UK courts, potentially delaying summer payouts to millions of drivers.
Filings suggest manufacturers’ lending arms have massively underestimated bill from FCA’s £9.1bn redress schemeCarmakers are under pressure to drum up £3bn to cover payouts for motor finance scandal victims after failing to adequately prepare for a UK-wide compensation scheme that is due to begin this summer.Company filings show the lending arms of big vehicle manufacturers including Ford, BMW, Stellantis and Volkswagen may have massively underestimated the final costs of the financial regulator’s £9.1bn redress scheme. Continue reading...
