H
business
H
HOYONEWS
HomeBusinessTechnologySportPolitics
Others
  • Food
  • Culture
  • Society
Contact
Home
Business
Technology
Sport
Politics

Food

Culture

Society

Contact
Facebook page
H
HOYONEWS

Company

business
technology
sport
politics
food
culture
society

© 2025 Hoyonews™. All Rights Reserved.
Facebook page

Carmakers scramble to plug £3bn shortfall for UK loan scandal payouts

about 7 hours ago
A picture


Carmakers are under pressure to drum up £3bn to cover payouts for motor finance scandal victims after failing to adequately prepare for a UK-wide compensation scheme that is due to begin this summer,Company filings show the lending arms of big vehicle manufacturers including Ford, BMW, Stellantis and Volkswagen may have massively underestimated the final costs of the financial regulator’s £9,1bn redress scheme,The Financial Conduct Authority (FCA), which released the final terms of its compensation plan last month, has said about 42%, or £3,8bn, of the total bill will be shouldered by carmakers’ motor financing divisions.

However, manufacturers have collectively put aside just £803m,They will have to scramble to put together a further £3bn needed to cover the bill, which will help compensate drivers who were mis-sold car loans between 2007 and 2024,The compensation scheme is intended to draw a line under the scandal, in which drivers were overcharged for vehicle loans as a result of commission payments between lenders and car dealers,The FCA has estimated that victims will be in line for payouts worth £830 on average,Lenders embroiled in the scandal have heavily lobbied regulators and government officials over the past two years, saying that large compensation payouts could force some providers to withdraw loans or even collapse.

Carmakers’ involvement has turned up the political heat, with ministers wanting to ensure manufacturers are not deterred from investing and creating jobs in the UK.Anxieties over the potential fallout from a compensation scheme – which at one point was expected to come with a £44bn bill – led to a string of controversial interventions, including the chancellor, Rachel Reeves, urging the supreme court against awarding large payouts last year.Last summer, she also considered overruling the court if it sided too closely with consumers.Of the £9.1bn compensation scheme, roughly £7.

5bn will go to customers in the form of redress payouts, while the rest will cover administrative costs including contacting victims, making payments and other general running expenses.Lenders not tied to carmakers – including high street banks such as Lloyds, Santander and Barclays – are on the hook for 57% of the total bill.But unlike car manufacturers, they are much more prepared, having already put aside £3.9bn of the £5.2bn bill they are likely to face.

Of the carmakers, Mercedes-Benz has put aside the largest sum to date, totalling £424m, followed by BMW at £207m, Renault at £74m, Ford at £61m and Stellantis at £37m,Toyota has indicated it has put aside money for the scandal without stipulating the figure, while Volkswagen and Ferrari appear to have not put aside any funds to cover compensation to date,Benjamin Toms, an analyst at the investment bank RBC Capital Markets whose team compiled the lenders’ provisions, said: “There are probably three reasons why UK banks have been more proactive in their provisioning,“Firstly, because this issue was more material for them,Secondly, UK banks will place a high level of importance on their relationship with the regulator, and thirdly, finance goes more to the heart of banks day-to-day operations relative to car manufacturers where finance is a side arm.

”Lenders and consumer groups still have until 5pm on 27 April to challenge the FCA’s scheme and its proposed compensation bill, a move that could end up significantly delaying payouts.The FCA declined to comment on the carmaker’s compensation bill shortfall.A spokesperson for Mercedes-Benz said: “We are not in a position to comment further as we are still reviewing the findings.”BMW said it started putting aside money for the compensation scheme before the FCA finalised its compensation scheme, “in line with applicable accounting standards and based on the information available at the time”.Ferrari said the estimated financial impact at this stage was “not material” given that the FCA had excluded claims for high-value loans “higher than than 99.

5% of other loans that year” such as those needed to buy its sports cars, adding that it would provide updates in due course.Volkswagen Financial Services UK said it was “carefully reviewing the detail to understand what it means for our business and our customers” and would continue to engage with the FCA to ensure the process remained fair and proportionate.Renault welcomed the clarity provided by the FCA and said it would provide further updates.Toyota declined to comment.Ford and Stellantis did not respond to a request for comment.

societySee all
A picture

Effect of ‘gamechanger’ Alzheimer’s drugs ‘trivial’, review concludes

Drugs that have been hailed as a gamechanger for the treatment of Alzheimer’s disease make no noticeable difference to patients, according to an extensive review.The analysis of clinical trials in people with mild cognitive impairment or mild dementia found that the effects of anti-amyloid drugs on cognition and dementia severity over 18 months were “trivial”, with improvements in functional ability “small at best”.The verdict is a blow to the new wave of drugs that are designed to slow Alzheimer’s by clearing clumps of amyloid protein that build up in the brain. Amyloid plaques are a hallmark of Alzheimer’s disease, along with another protein called tau which forms toxic tangles in neurons.The Cochrane review drew on gold standard methods to assess data from published clinical trials, but was criticised by some researchers and charities for combining results from older, failed drugs with those from newer, more effective medicines

4 days ago
A picture

People in north of England twice as likely to be killed in accidents as Londoners, report finds

People in the north of England are twice as likely to be killed in accidents than Londoners, with accidental deaths clearly linked to deprivation, a report has found.The research, from safety charity the Royal Society for the Prevention of Accidents (RoSPA), highlights vast regional differences in accidental deaths, which have also seen an overall increase.The north-east is the most dangerous region for accidents in England, with a death rate of 44 per 100,000 people, compared to an average of 32 across the country, with the north-west in second place with a death rate of 38 per 100,000 people.Scotland was the most dangerous of the devolved UK nations, with an even higher accidental death rate of 51 per 100,000, while Wales equalled the north-east of England, and Northern Ireland’s rate of 39 per 100,000 was also above the England average.Meanwhile, London was the safest place to live in the UK, with an average of 19

4 days ago
A picture

Sexual harassment is rife on comedy circuit and women lack protections, MPs told

Sexual harassment and abuse on the comedy circuit is persistent and under-reported, with protections available to women often limited or absent, a comedian has told MPs.Performers and campaigners said many female comedians are left to rely on informal warning systems to try to keep themselves safe but added that these systems can expose women to further risks.“Female comedians rely on so-called ‘whisper networks’, a shadow safeguarding system where warnings and experiences are shared on private WhatsApp threads,” Nina Gilligan, a comedian and the co-founder of the industry body Get Off Live Comedy, which provides HR support to those working in the industry, told the cross-party women and equalities committee on Wednesday.Chaired by the Labour MP Sarah Owen, the committee explored the experiences of women in live comedy, the representation of women across the sector and the barriers they face in building a career.The committee has been examining how employment protections apply in freelance and gig-economy sectors, where traditional safeguards are harder to enforce

4 days ago
A picture

Why we washed our hands of Izal | Brief letters

In the 1970s, to save money, a London psychiatric hospital replaced soft toilet tissue with Izal medicated toilet roll (Letters, 13 April). Therapists conducting successful sessions for outpatients with compulsive disorders were surprised by a sudden increase in relapse rates, until they realised that each sheet contained the exhortation “Now wash your hands”. Its use was discontinued. ‌Prof David C SandersMortain, France Izal toilet paper made excellent tracing paper, but it also made a superb sound in a comb and paper. One member of a jokey interval band at the original Concorde Jazz Club in Southampton played an Izal bumphone to great effect!David WittMalmesbury, Wiltshire It’s not all doom and gloom when products are discontinued

4 days ago
A picture

Government’s 1.5m housebuilding target in England is suffering from subsidence | Nils Pratley

This is what the government didn’t want to hear when its target to build 1.5m homes in England during this parliament already looked out of reach. The country’s biggest housebuilder is trimming its purchases of new land because the Iran war has created “a less certain backdrop”.Barratt Redrow’s “disciplined approach” isn’t a downing of tools, it should be said. The company had previously expected to buy between 10,000 and 12,000 plots; now it will acquire between 7,000 and 9,000

4 days ago
A picture

Prison officers given more training to avoid being manipulated into illicit relationships with inmates

A new programme of instruction and support will be given to trainee prison officers to help them avoid being manipulated into illicit relationships by experienced criminals.The Prison Service in England and Wales is developing the scheme, which will offer mentors and advice to trainee officers on how to handle complex relationships with prisoners.It comes as statistics show that prison officers are more likely to be younger and have less experience than a decade ago. It also follows the prosecution of more than a dozen former prison officers after becoming involved in financial and sexual relationships with inmates.They include Alicia Novas, 20, who was jailed for three years after working at HMP Five Wells in Wellingborough where she became involved with Declan Winkless, 31, and smuggled cannabis into prison

4 days ago
trendingSee all
A picture

‘I don’t want to waste the gas’: Uber and Lyft drivers reeling as fuel prices soar

about 4 hours ago
A picture

Vodafone incentivised security staff to fine its own franchisees

about 4 hours ago
A picture

UK’s OnlyFans tops $3bn valuation amid talks to sell stake to US investor

2 days ago
A picture

Finance leaders warn over Mythos as UK banks prepare to use powerful Anthropic AI tool

2 days ago
A picture

The Crucible holds tribute to former player and commentator John Virgo

about 16 hours ago
A picture

‘That’s a guppy’: Baumgardner swats aside Britain’s Dubois as feud escalates

about 17 hours ago