Motor finance: Lloyds, Barclays shares jump as FCA softens blow October 8, 2025 Shares in motor finance lenders rallied on Wednesday morning after the Financial Conduct Authority dropped a major update on its industry-wide redress scheme. Lloyds Banking Group – which owns the UK’s largest motor finance provider, Black Horse – was up over two per cent to 85.06p. Meanwhile, Close Brothers, which just last week set aside [...]
FCA orders lenders to pay £11bn in motor finance compensation October 7, 2025 The Financial Conduct Authority (FCA) has announced that it expects lenders to make 14.2 million payouts to individuals affected by unfair motor finance agreements, totalling around £11bn in compensation. The FCA estimates people would receive around £700 per agreement, on average. It has also been calculated that around 85 per cent of eligible consumers would [...]
Regulators target motor finance CMCs amid redress costs concern October 6, 2025 The Financial Conduct Authority is teaming up with a fleet of regulators to crackdown on misleading claims firms in the motor finance saga – even as the sector’s displeasure on the redress scheme rumbles on. The City watchdog will join the Solicitors Regulation Authority (SRA), Information Commissioner’s Office and the Advertising Standards Authority to tackle [...]
Close Brothers looks to ‘accelerate’ after ‘messy’ year October 1, 2025 Close Brothers is hoping to switch gears and “accelerate” after the motor finance scandal had the bank stuck in a rut. The specialist lender’s share price has swerved between a low of 185.00 and peak of 555.00 over the last 12 months. The car misselling saga has been the driving force of stock woes, sending [...]
Motor finance: BMW sets aside over £200m for car mis-selling September 22, 2025 BMW’s UK car finance arm has set aside over £200m to cover a potential hit from the motor finance scandal. The firm joins a batch of British lenders and motor companies, which have been forced to prepare provisions with millions of drivers eligible for compensation. In July, the Supreme Court handed City banks a lukewarm [...]
FCA: ‘Large number of consumers’ wronged in motor finance deals September 9, 2025 The UK’s financial watchdog is gearing up for an industry-wide redress scheme on the historic motor finance scandal where huge swathes of customers could be eligible for compensation. Nikhil Rathi, chief executive of the Financial Conduct Authority, said there was “evidence that there have been unfair relationships between lenders and their consumers” and that a [...]
Close Brothers shares downgraded despite motor finance win August 18, 2025 Analysts have slapped a downgrade on Close Brothers stock despite the bank’s motor finance win last month at the Supreme Court. The FTSE 250-listed bank’s stock rating was lowered to ‘Sector Perform’, down from previous ‘Outperform’ expectations. Close Brothers shares were down over four per cent in early trading to 494.80. It comes after the [...]
FCA boss rejects criticism of motor finance redress August 5, 2025 The head of the UK’s financial watchdog has pushed back at industry claims that the wide scope of the motor finance redress scheme is “impractical”. Nikhil Rathi, chief executive of the Financial Conduct Authority said: “We know it is difficult. But you can’t say the law has been broken and it is too difficult to [...]
‘Not the end of the story:’ Uncertainty for motor finance lenders after court ruling August 5, 2025 Banking stocks may be revving up on the back of a legal win but motor finance lenders might find there is still trouble lurking under the bonnet. City banks dodged a £44bn liability after the Supreme Court upheld the appeal of two banks in the historic car-misselling case. On Friday, Close Brothers and First Rand [...]
Motor finance ruling hands City banks £7bn stock boost August 4, 2025 The FTSE 100’s banking giants added billions to their market value on Monday after a hefty boost from the Supreme Court’s motor finance ruling. Lloyds Banking Group bolstered its market capitalisation by over £3.5bn after a seven per cent surge to a five-year high on the back of the top Court’s ruling last Friday. The [...]