Dec 3 (Reuters) - Britain's financial regulator will lift the pause on handling motor finance complaints on May 31, 2026, two months earlier than initially proposed, as it finalises a compensation
UK to Resume Handling of Motor Finance Complaints by May 2026
Dec 3 (Reuters) - Britain's financial regulator will lift the pause on handling motor finance complaints on May 31, 2026, two months earlier than initially proposed, as it finalises a compensation scheme for those hit by the mis-selling scandal, it said on Wednesday.
The Financial Conduct Authority had paused processing complaints in January 2024 while it assessed whether motor finance lenders and brokers had adequately disclosed commissions.
The scandal, which dates back to 2007, involves lenders such as Lloyds, Close Brothers and Barclays, that are accused of using excessively high interest rates in car-finance arrangements and including extra bonus payments.
The companies did not immediately respond to a request for comment.
The regulator has estimated that the industry will have to pay about 11 billion pounds ($14.57 billion) in compensation and administrative fees.
($1 = 0.7549 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Harikrishnan Nair)
