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Watchdog’s Car Finance Scheme Could Short-Change Consumers, MPs Say
- MPs and peers have warned that the car finance compensation proposals could short-change millions of consumers and are 'not fit for purpose.'
- The All-Party Parliamentary Group's report indicates that consumers could receive an average payout of £1,500 from courts compared to just £700 from the FCA's scheme.
- The APPG argues that lenders might retain about £7.4 billion of profits from mis-selling under the FCA's proposed plan, based on the difference between projected compensation costs and excess profits.
- Labour MP Dame Siobhain McDonagh concluded that the FCA's proposals appear influenced by lenders' profit margins regarding the compensation levels.
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FCA’s Motor Finance Redress Scheme Sparks Industry and Consumer Backlash
The Financial Conduct Authority’s motor finance redress scheme has ignited a firestorm of criticism, with both lenders and consumers finding fault in its proposals. The All-Party Parliamentary Group (APPG) on Fair Banking has accused the regulator of favoring lenders’ profit margins, highlighting a £4.4bn gap in the proposed scheme. Meanwhile, banking giants argue that the scheme goes too far… Source
Coverage Details
Total News Sources31
Leaning Left2Leaning Right1Center24Last UpdatedBias Distribution89% Center
Bias Distribution
- 89% of the sources are Center
89% Center
C 89%
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