Tag #Mis-Selling

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bbc.com

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Aug 4, 13:14

FCA's Car Finance Redress Scheme Faces Challenges Due to Paperwork Issues

The UK's Financial Conduct Authority (FCA) proposes a redress scheme for car finance mis-selling dating back to 2007, potentially costing £9bn-£18bn, but faces challenges due to missing paperwork and a Supreme Court ruling limiting claims; the FLA calls the scheme 'completely impractical'.

FCA's Car Finance Redress Scheme Faces Challenges Due to Paperwork Issues

The UK's Financial Conduct Authority (FCA) proposes a redress scheme for car finance mis-selling dating back to 2007, potentially costing £9bn-£18bn, but faces challenges due to missing paperwork and a Supreme Court ruling limiting claims; the FLA calls the scheme 'completely impractical'.

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How did the Supreme Court's ruling on hidden commissions impact the potential cost and scope of the FCA's compensation scheme?

Following a Supreme Court ruling partially favouring lenders, the FCA's redress scheme faces challenges. The scheme's scope (loans since 2007) and the potential loss of crucial documentation pose significant obstacles to determining eligibility and calculating compensation. The industry will bear the full cost, but the final bill will likely be less than initially feared, given the court's decision.

news.sky.com

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Aug 1, 07:15

UK Supreme Court to Rule on Car Finance Commission Disclosure

The UK Supreme Court rules today on whether car buyers must be informed about dealer commissions on finance deals, potentially impacting banks and millions of motorists with a compensation scheme costing up to £44 billion.

UK Supreme Court to Rule on Car Finance Commission Disclosure

The UK Supreme Court rules today on whether car buyers must be informed about dealer commissions on finance deals, potentially impacting banks and millions of motorists with a compensation scheme costing up to £44 billion.

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What are the immediate financial implications of the Supreme Court's ruling on car finance commission disclosure for UK banks and consumers?

The UK Supreme Court is ruling on whether car buyers must be informed about dealer commissions on finance deals. A previous Court of Appeal ruling favored motorists, finding non-disclosure unlawful. This case, impacting 99% of car finance deals, could significantly affect compensation schemes and lenders.

zeit.de

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Mar 12, 16:13

Bafin Finds Deficiencies in German Certificate Sales

The German financial regulator Bafin found deficiencies in the sale of certificates by banks and savings banks, noting insufficiently defined customer groups and market conditions for some products; around 20% of customers lacked full understanding of express certificates risks, resulting in over €3...

Bafin Finds Deficiencies in German Certificate Sales

The German financial regulator Bafin found deficiencies in the sale of certificates by banks and savings banks, noting insufficiently defined customer groups and market conditions for some products; around 20% of customers lacked full understanding of express certificates risks, resulting in over €3...

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What specific deficiencies did the Bafin find in the sales practices of banks and savings banks concerning certificates, and what are the immediate consequences?

The German financial regulator, Bafin, found deficiencies in the sale of certificates by some banks and savings banks, particularly concerning insufficiently defined target customer groups and market conditions for certain products. Around 20% of customers did not fully understand the risks of express certificates. However, Bafin found no evidence of systematic misselling.

dailymail.co.uk

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Feb 9, 13:09

Millions Owed in UK Car Finance Scandal

Millions of UK motorists who financed car purchases since April 2007 may be owed thousands in compensation due to an FCA investigation into undisclosed commissions used by car dealerships, potentially costing £30 billion.

Millions Owed in UK Car Finance Scandal

Millions of UK motorists who financed car purchases since April 2007 may be owed thousands in compensation due to an FCA investigation into undisclosed commissions used by car dealerships, potentially costing £30 billion.

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What are the immediate financial implications for UK motorists due to undisclosed commissions in car finance deals?

Millions of UK motorists who financed car purchases since April 2007 might be owed compensation due to undisclosed commissions. Dealerships adjusted interest rates to increase their commission, potentially resulting in overpayments for customers. A claims management company, Fair, estimates an average payout of £6,660 per affected individual.

dailymail.co.uk

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Jan 21, 16:11

UK Government Intervenes in £30 Billion Car Finance Mis-selling Case

The UK government is seeking Supreme Court intervention to limit potential £30 billion in compensation payouts to motorists over mis-sold car finance deals, arguing the October ruling could destabilize the motor finance market and impact millions of consumers.

UK Government Intervenes in £30 Billion Car Finance Mis-selling Case

The UK government is seeking Supreme Court intervention to limit potential £30 billion in compensation payouts to motorists over mis-sold car finance deals, arguing the October ruling could destabilize the motor finance market and impact millions of consumers.

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How might the structure of car finance commission agreements, specifically DCAs, have contributed to the current legal dispute?

The case centers on 'discretionary commission agreements' (DCAs) where dealer commissions were linked to interest rates, potentially influencing loan terms. The government argues the ruling could severely harm the motor finance industry, impacting millions who rely on loans to buy vehicles (80% of car purchases are financed). The Chancellor seeks a balance between consumer redress and market stability.

bbc.com

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Aug 2, 04:14

UK Supreme Court Curtails Mass Motor Finance Mis-selling Claim

The UK Supreme Court partially rejected a mass compensation claim for motor finance mis-selling, leaving open the possibility of smaller, individual claims totaling \£5bn-£13bn; one claimant received \£1,650 due to an unfair relationship with the lender.

UK Supreme Court Curtails Mass Motor Finance Mis-selling Claim

The UK Supreme Court partially rejected a mass compensation claim for motor finance mis-selling, leaving open the possibility of smaller, individual claims totaling \£5bn-£13bn; one claimant received \£1,650 due to an unfair relationship with the lender.

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What is the impact of the UK Supreme Court ruling on potential compensation claims for motor finance mis-selling?

The UK Supreme Court ruled against a mass compensation claim for motor finance mis-selling, rejecting the argument that hidden commission payments to car dealers were universally unlawful. However, the court left open the possibility of individual claims for unfair commissions, leading to a potential compensation payout of \£5bn-£13bn instead of the initially anticipated \£30bn. One claimant, Marcus Johnson, won a smaller compensation award based on an unfair relationship with the lender.

dailymail.co.uk

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Mar 12, 10:11

FCA Proposes \£10 Billion Redress Scheme for Mis-Sold Car Finance

The UK's financial regulator, the FCA, is proposing an industry-wide redress scheme to compensate millions of motorists affected by mis-sold car finance following a Supreme Court ruling that deemed secret commission payments to car dealers unlawful, potentially leading to over \£10 billion in payout...

FCA Proposes \£10 Billion Redress Scheme for Mis-Sold Car Finance

The UK's financial regulator, the FCA, is proposing an industry-wide redress scheme to compensate millions of motorists affected by mis-sold car finance following a Supreme Court ruling that deemed secret commission payments to car dealers unlawful, potentially leading to over \£10 billion in payout...

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What is the FCA's plan to address the widespread mis-selling of car finance, and what are the potential financial implications for both consumers and the industry?

The UK's financial regulator, the FCA, is proposing an industry-wide redress scheme to compensate motorists affected by mis-sold car finance. This follows a Supreme Court ruling deeming secret commission payments to car dealers unlawful. Millions of consumers may receive automatic payouts, potentially totaling over \£10 billion.

bbc.com

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Feb 24, 13:10

Bank of Ireland Reserves €172m for UK Car Finance Mis-selling

Bank of Ireland set aside €172m (£142m) for UK car finance mis-selling compensation following an FCA inquiry into hidden charges, impacting its 2024 profit (€1.9bn) while its UK division showed a 27% profit increase to £303m.

Bank of Ireland Reserves €172m for UK Car Finance Mis-selling

Bank of Ireland set aside €172m (£142m) for UK car finance mis-selling compensation following an FCA inquiry into hidden charges, impacting its 2024 profit (€1.9bn) while its UK division showed a 27% profit increase to £303m.

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How did the 2021 FCA ban on commission-based car finance deals contribute to the current compensation issue?

The FCA banned commission-based car finance deals in 2021, where dealers profited from higher interest rates. Bank of Ireland's provision reflects potential liabilities from deals before this ban. The UK car finance market, involving about two million agreements annually, is under significant regulatory scrutiny.

dailymail.co.uk

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Jan 22, 01:08

UK Government Intervention Limits Car Finance Mis-selling Payouts, Boosting Lender Shares

The UK Treasury is seeking to limit compensation payouts in a multi-billion pound car finance mis-selling case, causing shares in affected lenders to rise sharply, despite the potential for industry disruption.

UK Government Intervention Limits Car Finance Mis-selling Payouts, Boosting Lender Shares

The UK Treasury is seeking to limit compensation payouts in a multi-billion pound car finance mis-selling case, causing shares in affected lenders to rise sharply, despite the potential for industry disruption.

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How might the government's attempt to limit compensation payouts in the car finance scandal affect the broader UK economy and consumer confidence?

The UK Treasury's intervention in the Supreme Court case highlights concerns about the industry's stability and the potential for a major financial crisis similar to the PPI scandal. Approximately 80% of new car purchases rely on financing, meaning significant payouts could disrupt the market, impacting both lenders and consumers.

dailymail.co.uk

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Jan 6, 16:11

£28 Billion Motor Finance Mis-selling Compensation Bill Looms

The Court of Appeal's ruling on unlawful commission payments in motor finance deals could cost lenders £28 billion in compensation, impacting firms like Lloyds Banking Group (£4.2 billion) and Close Brothers Group (£460 million), with a December 4th deadline for final responses to complaints.

£28 Billion Motor Finance Mis-selling Compensation Bill Looms

The Court of Appeal's ruling on unlawful commission payments in motor finance deals could cost lenders £28 billion in compensation, impacting firms like Lloyds Banking Group (£4.2 billion) and Close Brothers Group (£460 million), with a December 4th deadline for final responses to complaints.

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What are the potential long-term consequences of this ruling on the motor finance industry's practices, consumer protection, and regulatory oversight?

The Supreme Court appeal by Close Brothers and FirstRand could alter the landscape of this compensation. However, the FCA's proactive stance and the potential cost exceeding that of the PPI scandal signify a significant shift in regulatory oversight and consumer protection within the motor finance industry. The December 4th deadline for lender responses to complaints further underscores the urgency and potential for wider repercussions.

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