{"id":45867,"date":"2026-06-30T11:16:09","date_gmt":"2026-06-30T11:16:09","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/45867\/"},"modified":"2026-06-30T11:16:09","modified_gmt":"2026-06-30T11:16:09","slug":"lenders-challenge-fca-car-finance-redress-scheme-over-property-rights","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/45867\/","title":{"rendered":"Lenders challenge FCA car finance redress scheme over property rights"},"content":{"rendered":"<p>The <a href=\"https:\/\/www.fca.org.uk\/news\/statements\/fca-confirms-motor-finance-redress-scheme\" target=\"_blank\" rel=\"nofollow noopener\">FCA introduced the redress scheme<\/a> following a Supreme Court ruling on the issue last year. The regulator expects the scheme to generate roughly \u00a37.5 billion in payouts across 12.1 million loans taken out between 2007 and 2024, with operating costs of \u00a31.6 billion.<\/p>\n<p>Under the proposals, lenders must calculate refunds using either a 17% or 21%\u00a0reduction in the annual interest rate charged on a loan, depending on when the agreement was made.<\/p>\n<p>Lawyers acting for Volkswagen Financial Services, led by Richard Handyside KC, told the tribunal the interest <a href=\"https:\/\/www.mpamag.com\/uk\/glossary\/rate-reductions\/558478\" rel=\"nofollow noopener\" target=\"_blank\">rate reductions<\/a> were \u201cnot reasonable proxies for loss and are not evidentially supported.\u201d They said the lender \u201cstrongly supports the introduction of a consumer redress scheme in relation to motor finance agreements,\u201d but added that \u201cany such scheme must be lawful.\u201d<\/p>\n<p>The lawyers also argued the scheme amounted to \u201ca disproportionate interference\u201d with the company&#8217;s property rights, claiming the FCA \u201ccould have designed a more targeted and proportionate scheme that met its objectives.\u201d<\/p>\n<p>Lord Keen of Elie KC, representing Mercedes-Benz Financial Services, told the tribunal the regulator had exceeded its legal authority. He criticised the FCA&#8217;s treatment of loans from in-house finance providers, saying its \u201cview of the market as a monolithic bloc is simply wrong\u201d and that \u201cthe FCA irrationally disregarded the data in favour of its own unexplained assumptions.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The FCA introduced the redress scheme following a Supreme Court ruling on the issue last year. The regulator&hellip;\n","protected":false},"author":2,"featured_media":45868,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20951],"tags":[38871,38870,3622,38872],"class_list":["post-45867","post","type-post","status-publish","format-standard","has-post-thumbnail","category-mercedes-benz","tag-car-finance","tag-fca","tag-mercedes-benz","tag-redress-scheme"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/45867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=45867"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/45867\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/45868"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=45867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=45867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=45867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}