The UK's All-Party Parliamentary Group on Fair Banking has questioned whether the Financial Conduct Authority’s proposed consumer redress model for historic car finance mis-selling provides adequate compensation, after its analysis showed that average payments under the scheme would fall significantly below levels seen through the courts or the Financial Ombudsman Service. According to the report, the FCA’s preferred “hybrid” methodology would produce an average payout of around £700 across all qualifying ...

Mike Regnier, Santander’s chief executive, said that the car finance compensation scheme could hit consumers by restricting the amount of credit available to motorists - House of Commons/UK Parliament/PA Santander has called on Rachel Reeves to intervene over the £11bn car finance compensation scheme after warning it risks damaging the economy. The Spanish banking giant wants the Chancellor to help limit the number of drivers who can access the redress programme by narrowing its scope. It issued the ple ...

Lloyds Banking Group has reserved an extra £800m ($1.06bn) to address potential costs arising from the latest car finance mis-selling scandal . Recently, the bank announced the incurring of additional charges. This decision follows a consultation paper issued by the Financial Conduct Authority (FCA) regarding a proposed industry-wide compensation scheme for motor finance customers, after a Supreme Court ruling earlier this year. The group, which operates a car finance provider, Black Horse, has evaluate ...

Lloyds Banking Group has conveyed the likelihood of incurring further charges due to the car finance mis-selling scandal. This follows the UK Financial Conduct Authority's (FCA) announcement that the total cost to banks could reach £8.2bn ($11bn) as a result of the scandal. The issue at hand stems from the way commissions were paid to motor dealerships, incentivising higher interest rates on millions of vehicle sales. According to regulatory and legal findings, these payments were not sufficiently trans ...