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FCA faces four lawsuits over £9.1bn compensation scheme for car loan victims

about 13 hours ago
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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 “robustly” as the “fastest, simplest route for consumers and the most efficient way for firms to put things right”,The FCA confirmed the Guardian’s report of a legal challenge from the consumer group Consumer Voice, which claims that the scheme massively short-changes victims,It is represented by Courmacs Legal.

The watchdog is also facing challenges from the lenders Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance,The FCA said none of the claims received were expressly in the name of any individual consumers,“We will defend the scheme robustly as lawful and the best way to resolve such a widespread, long running and complex issue,” the FCA said,“These legal challenges create fresh uncertainty for millions of consumers and for the second largest consumer credit market,”The FCA is due to hand aggrieved borrowers £830 on average for each mis-sold loan.

The FCA said that it was “engaging at pace” with lenders and consumer groups to understand the views of all sides as it looked at next steps for the scheme, including “contingency planning”.The legal actions dash the regulator’s hopes of drawing a line under the motor finance scandal, in which drivers were overcharged for loans as a result of commission payments between lenders and car dealers between 2007 and 2024.The challenges could mean taking the FCA to the upper tribunal, where a judge would be asked to review the merits of the long-awaited compensation programme.That could end up delaying payouts to drivers, which were expected to begin as early as this summer.The FCA said: “We welcome the broad support for the scheme and the commitment from most lenders to implement it.

“The final scheme is fair to consumers and proportionate for firms.[Lenders] have taken a pragmatic approach recognising that introducing a scheme on this scale promptly has required us to make judgments to simplify in a reasonable and lawful way some complex legal and operational issues.Alternative approaches would be slower and much more costly for firms.”The FCA issued the final terms of the £9.1bn compensation programme in March.

About £7.5bn will be paid out to borrowers, while the remaining £1.6bn will cover administrative costs for banks and specialist lenders.That is a fraction of the up to £44bn that some analysts were suggesting banks could face prior to last summer’s supreme court ruling.
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Exxon and Chevron quarterly earnings fall despite soaring oil prices

Exxon Mobil and Chevron reported drops in profit in their first quarter despite surging oil prices, a result of stalled deliveries and supply disruptions in the Middle East.Exxon’s quarterly earnings fell to $4.2bn from about $7.7bn the same quarter last year, a decline of about 46%, while Chevron’s profits fell to $2.2bn from about $3

about 8 hours ago
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Firm bookings, fast refunds: easyJet and On The Beach aim to reassure jittery travellers with holiday pledges

Forget the best infinity pool or alluring sea view: travel firms are now competing for the summer holidaymakers’ pound with pledges of the least likely cancellation – or the fastest refund.Airlines and travel companies have been vying to announce fresh commitments to reassure jittery consumers who are booking flights ever later since the start of the US-Israel war on Iran.The hostilities have been driving up oil prices, with jet fuel costs rising even more sharply. More worrying for many thinking of a summer trip, as the standoff and blockades around the strait of Hormuz continue, is the prospect of scarcity leading to flights being axed.Some European airlines such as Lufthansa have already cancelled thousands of flights owing to rising fuel costs, while Virgin Atlantic has introduced a fuel surcharge on long-haul flights

about 9 hours ago
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Parents already have controls over smartphones – they should use them | Letters

A crucial facility seems to be missing from the coverage of smartphones in schools – and outside (I was wrong about the danger of smartphones in schools. It’s far, far worse than I thought, 22 April). Parental controls, which both Apple and Android have, enable downtimes to be set to ensure phones don’t work in school. They can also set downtimes for outside school and block inappropriate apps.We use these for our 14-year-old daughter to keep her safe and manage the addictive effects of phone use

about 9 hours ago
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‘Awkward and humiliating’: UK job hunters share frustration with AI interviews

Nearly half (47%) of UK job seekers have had an AI interview, research from the hiring platform Greenhouse has found.In its survey of 2,950 active job seekers, including 1,132 UK-based workers, with additional respondents from the US, Germany, Australia and Ireland, it found that 30% of UK candidates had walked away from a hiring process because it included an AI interview.We asked people about their experiences of AI interviews. The responses included those who found it “awkward” and “humiliating”. Others spoke of wanting a human element in the interviews, and said they were not sure if their interview had even been reviewed

about 20 hours ago
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Lando Norris takes Miami GP sprint pole as lightning fears loom over F1 return

With Formula One returning after its early season enforced break, the Miami Grand Prix is proving an enticing prospect given most of the teams used the time to work furiously on upgrades to their cars. Many of which are being deployed here. Intriguing enough were it not also for the updated regulations being given their debut outing and the threat of lightning storms on Sunday potentially causing a schedule change.Five weeks have passed since the last round in Japan on 29 March after the Saudi Arabian and Bahrain GPs were cancelled because of the war in the Middle East, a break welcomed by many as an unexpected opportunity to assess their cars, which are still very much a work in progress after the rule changes this season.Mercedes held the whip hand in the opening races, and are still unbeaten, with Kimi Antonelli leading his teammate George Russell at the top of the world championship by nine points

about 4 hours ago
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Sivo hat-trick keeps Leeds on top as they hold off Wakefield fightback

Leeds Rhinos underlined their ­position at the top of Super League with this bruising win over Wakefield Trinity, with half-back Jake Connor further emphasising why he should be England’s starting scrum-half for this autumn’s Rugby League World Cup.Brad Arthur’s side were eye-­catching once again as they survived having three players sent to the sin-bin to defeat a Wakefield side who could have drawn level with the Rhinos had they won here after their own impressive start to 2026.However, this contest proved a step too far for Trinity, who were outclassed by Leeds, and Connor in particular, when it mattered most.Super League’s reigning Man of Steel was near faultless, providing four try assists and having a wider hand in almost everything Leeds did well. Having been bizarrely omitted for last year’s Ashes by Shaun Wane, the odds on an England call-up under the new coach, Brian McDermott, will be shortening by the day with performances like these

about 4 hours ago
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ACCC v Woolworths may have exposed the ‘magic’ of supermarket discounts – but will it change how we shop?

about 10 hours ago
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Renault says ‘seismic shift’ in electric car interest after Iran war oil price shock – as it happened

about 11 hours ago
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‘Temu Range Rover’: what the bestselling Jaecoo 7 says about China’s electric car ascendancy

about 11 hours ago
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Czech energy group hints at combined bid for British Steel and Speciality Steel UK

about 12 hours ago
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FCA faces four lawsuits over £9.1bn compensation scheme for car loan victims

about 13 hours ago
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CEO pay soared in 2025, 20 times faster than workers’ pay

about 15 hours ago