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

AI generated summary, Read the full article for complete information.

BBC News | Car finance compensation scheme faces challenge and delay

AI generated summary, Read the full article for complete information.

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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