US EditionCar finance compensation scheme faces challenge and delay
Consumer Voice says the FCA’s calculation method could leave millions of motorists hundreds of pounds short, with payouts averaging £829 per person.
- Consumer Voice is taking the "unprecedented" step of applying for a legal review of the Financial Conduct Authority car finance redress scheme, warning it leaves "too many people short-changed."
- The regulator tightened eligibility rules, reducing eligible agreements to 12.1 million from 14.2 million, a move that excludes the "vast majority" of complaints from full redress despite lenders facing a £9.1 billion total bill.
- Alex Neill, co-founder of Consumer Voice, argues the calculation is "fundamentally flawed and significantly underestimates the true harm suffered," even as average payouts reach £829 per person.
- The Financial Conduct Authority defended its approach, stating "our scheme is the quickest, fairest way to compensate consumers," while warning legal challenges could delay payments due this summer.
- Firms are expected to begin contacting customers from June 30, though this legal development creates uncertainty regarding whether compensation payments will proceed as originally planned by the regulator.
13 Articles
13 Articles
Motorists 'owed' hundreds more as UK watchdog under fire for failing to offer fair settlement
A major consumer group has launched a legal challenge against the Financial Conduct Authority, claiming its £9.1billion car finance compensation scheme is unfair to drivers and benefits lenders instead.Consumer Voice warned millions of motorists could miss out on money they are owed and has formally told the regulator it will take the case to the Upper Tribunal.If successful, the challenge could force lenders to pay billions more in compensation…
Evening Standard
perspectivemedia.comCity watchdog faces legal action over £9.1bn car finance compensation scheme
Consumer Voice is to apply to the upper tribunal for a review of the scheme.
Consumer Voice Will Challenge FCA Finance Compo Scheme
It’s something that’s dragged on for years, but there could well be a twist in the tale yet. Here’s the word; Consumer Voice is bringing a novel legal challenge to alter the way compensation is [...] The post Consumer Voice Will Challenge FCA Finance Compo Scheme appeared first on .
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