Motor finance legal battle set for February 2027 Banking The City watchdog has confirmed that the legal battle over its motor finance redress scheme will take place early next year following widespread backlash against its multi-billion-pound programme. The Financial Conduct Authority (FCA) will face challenges from three lenders, Volkswagen Financial Services, Mercedes-Benz Financial Services, and Crédit Agricole Auto Finance, as well as the advocacy [...]
Volkswagen takes £725m hit from motor finance scandal Banking The finance arm of Volkswagen has taken a mammoth hit from the motor finance scandal plunging it to a loss for the year. Volkswagen Financial Services UK (VWFS) set aside £725m for expected expenses under the City watchdog’s industry-wide car finance redress scheme, according to new account filings. The provision swung the firm to a [...]
‘Serious concern’: City watchdog accused of withholding information in motor finance row Banking The City watchdog is coming under pressure to release its communications with the Treasury and modelling data for its controversial motor finance redress scheme, City AM can reveal. The Financial Conduct Authority (FCA) is facing legal challenges from the finance arms of Volkswagen and Mercedes Benz as well as French-owned CA Auto Finance over its [...]
Aldermore puts jobs at risk in retreat from invoice finance market October 1, 2026 Aldermore is weighing a round of layoffs as it consults on plans to scale back its invoice finance business ahead of a sale, City AM can reveal. The Reading-headquartered lender is discussing plans to shrink its invoice finance division and slash the amount of customers it serves in the market, sources told City AM. The [...]
Motonovo hikes motor finance provision as buyers circle Aldermore September 30, 2026 Car finance firm Motonovo has ramped up its provisions for the motor finance scandal as top banks and private equity firms explore a takeover of its parent company Aldermore. The Cardiff-headquartered company recognised a £153.2m charge in its latest accounts for historical motor finance commissions. This was more than double the £60.6m recorded last year. [...]
Close Brothers raises cost-cutting target as job cuts begin September 29, 2026 Close Brothers has dialled up its cost-cutting plans and said it was “well into next stage of restructuring” after revealing it would slash its headcount by around 20 per cent earlier this year. The FTSE 250 bank said on Tuesday it had delivered £36m of savings in its latest financial year, coming ahead of the [...]
Aldermore’s sale interest shows banks are over motor finance September 17, 2026 Lloyds, Nationwide and Investec are all tipped to be circling Aldemore as its South African over prepares a sale. Samuel Norman takes a look at the runners and riders and what it could do for the market. Has the banking industry finally moved on from motor finance? The number of suiters circling Aldermore suggest as [...]
Santander and BMW in High Court spat over motor finance dispute September 16, 2026 Santander and Volvo are taking BMW to the High Court over a dispute related to motor finance deals, City AM can reveal. The Spanish banking giant, along with Volvo Financial Services, is claiming the carmaker caused damages after auto dealers unlawfully re-sold the same luxury vehicles to BMW, leaving both firms claiming ownership over the [...]
FCA ‘worked backwards’ to justify motor finance redress, say lenders September 1, 2026 A trio of motor finance lenders have accused the City watchdog of “working backwards” to justify its redress scheme that is set to cost the industry billions. In new documents, Mercedes-Benz’s financial services arm, which has set aside as much as £400m in payouts for the car mis-selling scandal, said the Financial Conduct Authority’s (FCA) [...]
Treasury sought to cap motor finance payouts, court filings claim September 1, 2026 The government sought to cap payouts in the motor finance scandal at a level lenders could absorb and the City regulator acted “unlawfully” in failing to protect consumers, new court filings seen by City AM allege. Both the Treasury and Financial Conduct Authority (FCA) are facing fresh scrutiny over the motor finance redress scheme as [...]