Car Finance Payouts Could Be Delayed Years by Legal Fights, UK Watchdog Warns

Drivers seeking compensation for the motor finance scandal could face delays of up to three more years, the Financial Conduct Authority (FCA) has warned. A wave of legal challenges against the proposed compensation scheme threatens to prolong the payout process significantly.

Beyond the delays for consumers, the FCA estimates these legal battles could impose an additional £6bn in costs on lenders. The City watchdog has voiced frustration with both lenders and a consumer claims group for challenging its established scheme, arguing it complicates and extends the resolution for affected individuals.

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a wave of legal challenges to the compensation scheme for victims of the motor finance scandal could leave drivers waiting three more years for payouts, while piling £6bn of extra costs on to lenders.

FCA bosses informed MPs that the ongoing disputes could strain the watchdog's resources for years to come. The scandal, which centers on alleged mis-selling and unfair practices in car finance agreements, has already prompted a large number of complaints, leading to the development of the compensation scheme now facing these legal hurdles.

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