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

Posted on April 19, 2026 by Admin

Filings suggest manufacturers’ lending arms have massively underestimated bill from FCA’s £9.1bn redress scheme

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.

Car finance victims to get an average £830 payout but fewer loans eligible

Posted on March 30, 2026 by Admin

City regulator reduces number of loan agreements in line for compensation from 14m to 12m

Explainer: how will the payout scheme work?

Victims of the car finance scandal will be in line for payouts worth £830 on average, as the City regulator tightened the rules of its compensation scheme to cover fewer contracts.

The Financial Conduct Authority (FCA) released the final details of its planned redress programme, saying it had narrowed the number of loan agreements eligible for payouts from 14m to 12.1m contracts.

Lloyds bank faces £66m court battle with car loan customers

Posted on March 27, 2026 by Admin

Law firm is preparing claim on behalf of 30,000 consumers who fear the FCA’s redress scheme will shortchange them

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 claims law firm Courmacs Legal is planning to file a £66m omnibus claim on behalf of borrowers who believe they were financially harmed by car loan contracts set up by Lloyds’ motor finance arm, Black Horse.

About £1bn in car loan compensation at risk because data deleted, lawyers warn

Posted on May 26, 2025 by Admin

Lenders’ routine purging after six years means details of some car buyers due compensation may have been lost

Consumers are at risk of losing £1bn of compensation over inflated car loans because high street banks and specialist lenders deleted their data, claims lawyers have warned.

Borrowers, banks and the government are anxiously awaiting a ruling from the supreme court that could spark one of the biggest redress schemes since the £50bn payment protection insurance (PPI) saga.