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New VW and Mercedes 'Uncertainty' over £829 Payouts to Drivers
Volkswagen, Mercedes-Benz and Credit Agricole units say the £9.1 billion plan is unfair, while the FCA says millions may still be paid.
- The financial services arms of Volkswagen, Mercedes-Benz, and Credit Agricole have launched legal challenges against the Financial Conduct Authority's industry-wide redress scheme, set to cost the industry about £9.1 billion.
- Following the FCA setting final details in March, these lawsuits indicate potential delays to the long-running motor finance saga that has left millions of consumers facing uncertainty regarding compensation.
- Consumer Voice argues the compensation package will short-change drivers, while major lenders including Lloyds, Barclays, Santander, Close Brothers, and the Finance and Leasing Association have decided not to challenge the scheme.
- Defending the scheme, the FCA stated it will "defend the scheme robustly as lawful and the best way to resolve such a widespread, long-running and complex issue," noting £39 billion was borrowed in 2024.
- Engaging with lenders and consumer groups, the FCA plans to provide further advice next week while determining next steps, including contingency planning, for the compensation process expected to settle by 2027.
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FCA 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 The 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 (FCA) said that it will defend the scheme [...]
Coverage Details
Total News Sources15
Leaning Left5Leaning Right1Center5Last UpdatedBias Distribution46% Left, 45% Center
Bias Distribution
- 46% of the sources lean Left, 45% of the sources are Center
46% Left
L 46%
C 45%
Factuality
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