Motor Finance – the FCA Is More Worried About Banks than Consumers

The FCA unveiled a motor‑finance redress scheme that will return roughly £7.5bn ($9.5bn) to about 12.1 million borrowers, far less than the £20bn ($25bn) originally promised. The scheme trims compensation from 14.2 million agreements to 12.1 million, leaving millions of consumers with only a fraction of what they are owed. Critics argue the regulator has sided with banks, imposing a taskforce on law firms while offering no fines to the lenders responsible for hidden‑kickback practices. Consumer Rights Solicitors have already launched 30 omnibus claims covering over 15,000 agreements, signalling continued legal pressure.

Source: Legal Futures (UK)