UK watchdog says car finance legal challenge hearing unlikely before October
The FCA said 4 legal challenges could force changes to a compensation scheme expected to cost the industry about £9.1 billion.
- The Financial Conduct Authority warned that millions of car finance payouts face delays or potential collapse due to four separate legal challenges to its compensation scheme.
- Volkswagen, Mercedes-Benz, the French bank Credit Agricole, and Consumer Voice are challenging the rules, arguing they are unlawful; the FCA previously estimated the scheme could cost the industry about £9.1 billion.
- At least one claim alleges the FCA breached the rights of lenders under the 1998 Human Rights Act, with the regulatory body facing plans that would result in an estimated average of £829 per payout.
- The FCA is discussing the "possibility of suspending some elements" of its compensation scheme, while warning lenders to prepare for a scenario where "there would be no scheme."
- Despite the uncertainty, the FCA continues advising consumers to complain directly to their lender if they believe they are owed compensation, using a template letter on its website.
11 Articles
11 Articles
UK watchdog says car finance legal challenge hearing unlikely before October
Britain's financial watchdog said on Friday a tribunal hearing on legal challenges to its compensation scheme for mis-sold car loans was unlikely before October, and told lenders to prepare for a possibility that the scheme could be scrapped entirely.
FCA issues warning over car finance compensation as legal battle could see UK drivers denied payouts – UK Times
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails Millions of car finance payouts are in jeopardy after the UK’s financial watchdog indicated its compensation scheme faces significant delays, changes, or even collapse. This uncertainty stems from four legal challenges against the Financial Conduct Authority (FCA…
FCA issues warning over car finance compensation as legal battle could see UK drivers denied payouts
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails Millions of car finance payouts are in jeopardy after the UK’s financial watchdog indicated its compensation scheme faces significant delays, changes, or even collapse. This uncertainty stems from four legal challenges against the Financial Conduct Authority (FCA…
Car finance scandal payments face big delay due to legal challenges
Regulator announced in October that some 14 million UK motorists were each entitled to around £700 in payouts Millions of UK consumers who bought a car on finance are now facing a significant delay to redress payments, after the Financial Conduct Authority (FCA) admitted legal challenges put the official free-to-access scheme in doubt. In an update published on Friday 8 May, the regulator admitted there's a scenario in which there is “no scheme”…
Motor finance redress scheme hangs in balance amid legal row
The City watchdog has told lenders to prepare for the “alternative scenario of no scheme” in the long-running motor finance scandal as another legal showdown brews. The Financial Conduct Authority (FCA) has received four legal challenges including from lenders Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance. On the consumer side, the regulator is facing an omnibus claim for Consumer Voice, where i…
Coverage Details
Bias Distribution
- 60% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
