UK regulator warns car finance firms against low-ball redress offers

Banco Santander

Tue 09:16

LONDON, Nov 3 (Reuters) - Britain's financial watchdog on Tuesday warned motor finance lenders against offering motorists compensation for mis-sold car finance that did not meet the terms of its partly-suspended £9.1 billion ($12.2 billion) compensation scheme.
The Financial Conduct Authority said any voluntary compensation offers made by lenders should reflect at least the maximum redress that would be available under its scheme, as it laid out its "minimum expectations" for offer letters.
The FCA said in July that parts of its redress plan would be suspended ahead of legal challenges expected to be heard next February.
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 (Reporting by Kirstin Ridley, Editing by Louise Heavens)
 ((kirstin.ridley@thomsonreuters.com; +44 (0) 207 513 5666;))