Motorists hoping for big payouts for financial mis-selling by major car makers’ associated arms look like losing out after all.
Media reports this week indicated the Financial Conduct Authority has come down on the side of the car makers’ finance providers and big banks to reject payments to customers.
Under the plan said to be going through final stages before the FCA makes it public, the car makers and their immediate lenders will be exempt from compensation payments.
There has been ‘heavy lobbying’ by banks and carmakers to make this significant change.
The FT reports that the financial regulator has listened to concerns that the redress scheme would harm investment int0 the UK’s automotive manufacturing industry.
However, consumer groups may challenge the decision in court and there may still be a fight for payouts and it’s unclear what will happen to the minor lenders who put up loans to non-franchised dealers.
