BBC News | Car finance compensation scheme faces challenge and delay

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Consumer Voice, a consumer‑advocacy group, announced it will legally challenge the Financial Conduct Authority’s £9.1 billion car‑finance compensation scheme, arguing that its methodology excludes about 4.7 million mis‑sold agreements and will leave many drivers short‑changed despite an average payout of £829 meant to begin this summer. The FCA says the scheme is the quickest, fairest way to compensate the 12.1 million affected borrowers, but the group plans to apply to the Upper Tribunal to have the calculation rules reviewed, which could delay payments. While some experts warn a judicial review may cause short‑term pain, they hope it will ultimately secure a fairer outcome for consumers who were overcharged under hidden commission arrangements.

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

#ConsumerVoice #FinancialConductAuthority #UpperTribunal #KevinDurkin #JamesDaley

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