FCA faces four lawsuits over £9.1bn compensation scheme for car loan victims
The UK's Financial Conduct Authority (FCA) is facing four legal challenges to its £9.1bn compensation scheme for victims of the motor finance scandal, which spans from 2007 to 2024. The lawsuits, brought by consumer group Consumer Voice and three lenders, threaten to delay payouts expected as early as summer 2026. The FCA maintains the scheme is the fastest and fairest resolution, offering an average of £830 per affected loan.
- ▪The FCA issued the final terms of the £9.1bn motor finance compensation scheme in March 2026.
- ▪Legal challenges come from Consumer Voice, Volkswagen Financial Services, Mercedes-Benz Financial Services, and Crédit Agricole Auto Finance.
- ▪The scheme aims to distribute £7.5bn to borrowers, with £1.6bn covering administrative costs.
- ▪Payouts could be delayed if the cases proceed to the upper tribunal for review.
- ▪The FCA says the scheme is lawful and the most efficient way to resolve widespread mis-selling of car loans.
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The FCA issued the final terms of the £9.1bn motor finance compensation scheme in March Photograph: Murdo MacLeod/The GuardianView image in fullscreenThe FCA issued the final terms of the £9.1bn motor finance compensation scheme in March Photograph: Murdo MacLeod/The GuardianMotor financeFCA faces four lawsuits over £9.1bn compensation scheme for car loan victims Watchdog says legal challenges from Consumer Voice and three lenders ‘create fresh uncertainty for millions of consumers’ Business live – latest updates Mark SweneyFri 1 May 2026 08.38 EDTLast modified on Fri 1 May 2026 08.39 EDTSharePrefer the Guardian on GoogleThe UK financial watchdog is facing four legal challenges against its £9.1bn compensation scheme for victims of the motor finance scandal.The Financial Conduct Authority…
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