Overview
- The regulator, which on Friday disclosed four court challenges, said it will defend the car‑finance compensation scheme as lawful.
- Volkswagen Financial Services, Mercedes‑Benz Financial Services and Credit Agricole Auto Finance filed lender actions, while Consumer Voice brought a separate case through Courmacs Legal.
- The FCA warned the cases create fresh uncertainty for millions of borrowers and could slow payouts it expected to start this year with most completed by the end of 2027.
- The watchdog said it is engaging with lenders and consumer groups, preparing contingency plans, and will issue further guidance to firms next week.
- The FCA urged motorists to complain directly to their lender using its free template and to avoid claims firms that can take more than 30% of any compensation.