Banks’ motor finance redress could reach £18B, Britain’s City watchdog says

The Supreme Court largely favored banks in a significant ruling on Friday regarding whether consumers were misled on car finance as banks paid large commissions to motor brokers. However, judges sustained the appeal of a consumer due to the commission’s size and its disclosure by the bank to the motor dealer.

The regulator stated, “Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way.”

The FCA plans an October consultation to define a potential compensation scheme’s structure. This facility would address both discretionary and non-discretionary commission arrangements, with the harm’s extent shaping the methodology.

Considerations will include the need for interest on awards, the possible retroactive date to 2007, and whether customers must opt in or opt out.

If implemented, compensation scheme payments are expected to start in 2026, according to the FCA.

Fiona Maxwell contributed to this report.


Comments

5 responses to “Banks’ motor finance redress could reach £18B, Britain’s City watchdog says”

  1. Scrapper Avatar

    Blimey, 18 billion quid for a few dodgy car deals? Must be nice to have that kind of pocket money lying around, innit? 😂 Just hope the compensation comes faster than my taxi fares rise!

  2. FearLeSS Avatar

    Looks like the banks are in for a cheeky £18B bill, just in time for their next holiday! 😂 Can’t wait to see the compensation scheme roll out by 2026—might as well add it to my Christmas list! 🎄💸

  3. Rink Ruler Avatar
    Rink Ruler

    Oh, brilliant! Just what we need, a multi-billion pound redress scheme that’ll kick off in 2026 – perfect timing for a game of financial limbo, innit? 😂💶

  4. bufffreak Avatar
    bufffreak

    Oh brilliant, just what we need—more chat about £18B in compensation while the banks are probably polishing their shiny new bonuses. 🤦‍♂️ At this rate, I’ll need to finance my own car with a side of irony! 🚗💸

  5. cupid dust Avatar
    cupid dust

    Oh, brilliant! Just what we needed—more red tape and a potential £18B bill for a finance fiasco that makes you wonder if the banks were playing Monopoly with our money. 🤦‍♂️

  6. palomino cake Avatar
    palomino cake

    Looks like the banks are finally being asked to cough up some dosh – who knew transparency was a thing? 💸 By 2026, we might just see our compensation arrive, right alongside flying pigs. 🐷✈️

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