Pontypridd based Woodville Consultants has entered administration and was one of the businesses that helped pay for the wave of motor finance compensation claims in the wake of the mis-sold commission scandal.
The collapse has left thousands of investors exposed after the company, which raised money through loan notes and high-yield bonds, amassed a loan book worth more than £249m, Car Dealer Magazine reported.
The Pontypridd-based business provided funding to UK law firms pursuing legal claims, including those linked to the ongoing car finance commission scandal. According to its website, Woodville had backed around 300,000 legal claims and financed cases using money raised from private investors.
Since the FCA launched its investigation into discretionary commission arrangements in 2024, law firms and claims management companies have mounted extensive marketing campaigns encouraging motorists to pursue compensation on a no-win, no-fee basis. The FCA says motorists could save by following up claims through the organisation’s own advice.
The regulator’s proposed redress scheme is expected to cover around 12 million car finance agreements dating back to 2007. Current FCA estimates suggest lenders face compensation costs of around £7.5bn, alongside a further £1.5bn in administration expenses, with average payouts expected to be around £830 per eligible customer and initial payouts are expected next Spring.
