Overview
- Mercedes‑Benz Group confirmed it has appealed against the Financial Conduct Authority’s plan to compensate drivers for mis‑sold motor finance.
- Consumer Voice has applied to the Upper Tribunal to challenge the scheme, arguing it under‑compensates motorists and misapplies a 2025 Supreme Court ruling.
- Several major lenders, including Santander, Lloyds and Barclays, have said they will not challenge the regulator’s plan and are preparing to implement it.
- The FCA scheme covers about 12.1 million agreements from 2007 to 2024, with average payments near £829 and an estimated £7.5 billion going to customers out of a £9.1 billion total cost.
- Most cases involve discretionary commission deals that let dealers raise interest rates to earn more commission, a practice the FCA banned in 2021, and the regulator says legal action could push payments back by months, with Martin Lewis warning it could be up to a year.