Lloyds Faces £66 Million Car Finance Lawsuit As FCA Unveils £8 Billion Compensation
Key Takeaways
- Lloyds Banking Group faces a £66m car-finance mis-selling lawsuit from about 30,000 borrowers.
- FCA to publish final redress scheme rules for millions of car-finance customers.
- Lenders push back against the scheme, fearing inadequate redress for borrowers.
FCA Unveils £8 Billion Scheme
The FCA published its motor finance compensation scheme.
“- Published Millions of drivers will find out how they can claim compensation for mis-sold car finance when the financial regulator outlines its final rules on the scheme”
It covers 14 million agreements from April 2007 to November 2024.
The average compensation per agreement is estimated at £700.
Lloyds Faces £66m Lawsuit
Lloyds is facing a £66 million omnibus lawsuit by 30,000 customers.
Courmacs Legal charges a 28% success fee.
The move reflects consumer distrust of the FCA scheme.
Industry Provisions and Backlash
Ford increased its provision for redress to £155 million.
“Lloyds Banking Group is facing a court battle with 30,000 aggrieved car loan customers who are to abandon the City regulator’s official redress scheme amid fears it will shortchange consumers and favour lenders”
The FCA's estimated compensation is Europe's second-largest redress programme.
The scheme will run for 36 months.
More on Finance
Australia Halves Fuel Tax to Curb Prices as Oil Surges Above $116
11 sources compared
Attorney General Nick Brown Sues Kalshi To Shut Down Washington Operations, Compel User Disclosures
14 sources compared
SK hynix Confidentially Files For U.S. ADR Listing To Raise Up To $14 Billion
10 sources compared
CRFB Proposes Cap on Social Security to Slow Trust Fund Insolvency: $100,000 Couples, $50,000 Individuals
15 sources compared