motor finance

FCA faces four legal challenges to £9.1bn motor finance compensation scheme

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.

Barclays Tightens Lending After £228m Hit From Failed Mortgage Lender

Barclays is restricting lending to risky borrowers after taking a £228m hit from the collapse of mortgage lender Market Financial Solutions amid fraud allegations. The bank reported Q1 pre-tax profit of £2.8bn, up 3%, but credit impairment charges rose to £823m from £643m a year earlier. CEO CS Venkatakrishnan cited increasing fraud cases and the failure of three borrowers including Tricolor and First Brands, raising concerns about lending standards in the $2tn private credit industry.

Consumer Voice launches legal challenge to FCA's £9.1bn car finance compensation scheme

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.

Carmakers scramble to plug £3bn shortfall for UK loan scandal payouts

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...

<a href="https://news.sky.com/story/mark-kleinman-blog-see-the-latest-stories-from-sky-news-city-editor-13475361">Motor finance firm Blue on brink of collapse after launch of &#163;9bn FCA redress scheme | Mark Kleinman blog</a>

<a href="https://news.sky.com/story/mark-kleinman-blog-see-the-latest-stories-from-sky-news-city-editor-13475361">City trade body dropped &#163;9bn motor finance challenge after intervention from FCA chief | Mark Kleinman blog</a>

<a href="https://news.sky.com/story/mark-kleinman-blog-see-the-latest-stories-from-sky-news-city-editor-13475361">Motor finance trade body prepares for legal challenge over &#163;9bn mis-selling scheme</a>