Lenders face a £30bn compensation bill to settle the motor finance scandal
1 month ago

Lenders face a £30bn compensation bill to settle the motor finance scandal

Daily Mail  

Lenders could be hit with a £30billion bill to cover compensation costs related to the motor finance scandal, ratings agency Moody’s has said. A court ruling recently found that banks must fully inform customers about the existence and size of commissions when selling car loans. The scale of the potential payout would make motor finance mis-selling the most expensive consumer banking scandal in Britain since PPI in the 2000s, which cost banks £50billion. Payouts: A court ruling recently found that banks must fully inform customers about the existence and size of commissions when selling car loans A review into the scandal by the City regulator could ultimately result in redress costs of between £8billion and £21billion, Moody’s said.

Bill Motor Finance  face  car  compensation  banks  potential  lenders  motor  finance  court  cost  total  ruling  settle  30bn  scandal  bill

History of this topic

Car finance compensation set to be on par with PPI scandal after Martin Lewis warning
8 months, 3 weeks ago

Car finance compensation set to be on par with PPI scandal after Martin Lewis warning

The Independent  

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Martin Lewis sees one million complaints as car finance payouts likely
9 months, 1 week ago

Martin Lewis sees one million complaints as car finance payouts likely

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Martin Lewis has seen more …

Lloyds forced to set aside £450m for car finance compensation
10 months ago

Lloyds forced to set aside £450m for car finance compensation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Lloyds Banking Group has revealed …

Lloyds sets aside £450m for car finance mis-selling compensation
10 months ago

Lloyds sets aside £450m for car finance mis-selling compensation

The Telegraph  

Lloyds Banking Group has set aside £450m to cover potential compensation claims from the mis-selling of car finance, in a brewing scandal which has drawn comparisons with the PPI crisis. Mr Nunn said: “We think this is a very different situation.” Lloyds had to pay almost £20bn over the PPI scandal, which crippled the bank for many years.” The bank …

Will the FCA's motor finance probe lead to PPI-style payouts?
10 months, 2 weeks ago

Will the FCA's motor finance probe lead to PPI-style payouts?

Daily Mail  

A regulatory probe into the historical sale of loans by the UK motor finance industry could mirror the PPI scandal and result in billions of pounds of compensation. Some analysts fear the surprise Financial Conduct Authority review, launched last month, represents a 'powder keg' that threatens the future of the country's motor finance sector. Probe: The Financial Conduct Authority launched …

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