BBC News | Car finance compensation scheme faces challenge and delay

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Consumer Voice, a consumer advocacy group, is preparing a legal challenge to the Financial Conduct Authority’s compensation scheme for drivers mis‑sold car‑finance agreements, arguing that the scheme—set to cost lenders £9.1 billion and pay an average of £829 to about 12.1 million affected borrowers—excludes roughly 4.7 million mis‑sold deals and will leave many people “short‑changed”. The group plans to apply to the Upper Tribunal to have the way losses are calculated reviewed, warning that the challenge could delay payouts, though it insists the aim is to fix the scheme’s flaws rather than stop compensation. The FCA maintains the scheme is the quickest and fairest way to compensate consumers, while acknowledging the possibility of further legal challenges before the Monday deadline.

Read more: https://www.bbc.com/news/articles/cj0v63v027lo?at_medium=RSS&at_campaign=rss

#ConsumerVoice #FCA #AlexNeill #UpperTribunal #KevinDurkin

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