Volkswagen and Mercedes-Benz have launched legal challenges to the City watchdog’s £9billion compensation scheme for victims of car finance mis-selling.
Volkswagen said it had identified issues that ‘require independent clarification’ and Mercedes is also contesting the Financial Conduct Authority (FCA) plan.
The scandal centres on car dealers given commissions by lenders to sell motor finance packages to customers from 2007 to 2024.
In some cases they were given larger payouts for pricier packages.
Lenders face a hit of £9.1billion under the plans. The watchdog estimates that 12.1m mis-sold loans are in line for a payout.
The FCA said three lenders are challenging the scheme, adding: ‘We are considering our approach and will set out more later this week.’
Questions: Volkswagen said it had identified issues in the car finance compensation scheme that ‘require independent clarification’. Mercedes also confirmed it was challenging the plan
A spokeswoman for the FCA said: ‘We are considering our approach and will set out more later this week.’
The FCA has said three lenders are challenging the scheme, without naming them.
Larger firms including Santander have opted not to mount a challenge.
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