UK Car Finance Industry Faces Major Mis-Selling Scandal

A recent court ruling has triggered a potential multi-billion-pound compensation scheme for consumers, prompting banks to brace for significant payouts.

The UK's Court of Appeal ruled that car dealers receiving commissions from banks without informed customer consent is unlawful.
The Financial Conduct Authority (FCA) is urging the Supreme Court to expedite a decision on whether banks can appeal the ruling.
Banks like Lloyds and Santander have set aside significant financial provisions in anticipation of a surge in consumer complaints.
The crisis is compared to the PPI scandal, with potential payouts reaching billions and affecting the car finance industry's stability.
Fitch has warned that the ruling could lead to a redress scheme, increasing pressure on banks and potentially impacting consumer lending options.