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The City watchdog has opened the door to a flood of complaints from car customers amid a growing car finance scandal that could cost lenders up to £30bn.
The Financial Conduct Authority (FCA) said many customers who took out a loan through a dealer may be owed compensation and has extended the time firms have to respond to complaints.
“Anyone who is dissatisfied with their car finance deal should complain,” the FCA said. It came as lenders Close Brothers and Investec said they face uncertainty over the impact of the scandal.
New complaints: The FCA said many customers who took out a car loan through a dealer may be owed compensation and has extended the time firms have to respond to complaints.
Santander UK has set aside £295m to cover the potential cost. Lloyds Banking Group has made a provision of £450m.
Credit rating agency Moody’s has estimated the total cost of the industry could reach £30bn, after the Court of Appeal said it was illegal for dealers to receive a commission from banks without the informed consent of the banks. customers.
The lenders involved plan to appeal to the Supreme Court. Close Brothers suspended car finance loans in the UK on October 25 and partially reinstated them on November 2.
Investec has set aside £30m, saying the outcome of the appeal and FCA guidance would affect its final bill.
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