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2 clusters · 12 sources · 6 days · First seen · Last updated

UK motor finance mis-selling compensation

Overview

Automotive finance providers in the United Kingdom are facing significant financial impacts due to a Financial Conduct Authority (FCA) redress scheme regarding motor finance mis-selling. The scheme addresses approximately 12.1 million historic car finance agreements where commissions were not properly disclosed to customers between April 2007 and November 2024.

BMW Financial Services UK has increased its provision for the scandal to £612 million for 2025, up from £206 million in 2024. This adjustment contributed to the company shifting from a £39 million profit in 2024 to a £139 million loss in 2025.

Similarly, Volkswagen Financial Services is expected to disclose significant compensation costs. While the total scale of the FCA-led program is estimated at roughly £9 billion, analysts suggest Volkswagen may need to set aside at least £500 million for the 2025 financial year, with some previous estimates suggesting costs could reach £1.5 billion.

Entities

Financial Conduct Authority · BMW · Barclays · Mercedes-Benz · Close Brothers

Timeline

  1. [BUSINESS] 8 sources
    Volkswagen faces major UK mis-selling compensation costs

    Volkswagen Financial Services is expected to disclose significant provisions, potentially totaling hundreds of millions of pounds, to cover mis-sold motor finance compensation in the UK.

  2. [BUSINESS] 4 sources
    BMW increases UK motor finance scandal provision to £612 million

    BMW Financial Services UK has increased its provision to £612 million to cover claims in the UK motor finance mis-selling scandal, surpassing provisions from Barclays and Close Brothers.

Sources

ceskenoviny.cz · cnbce.com · e15.cz · easterneye.biz · faz.net · foreignpolicyjournal.com · gbnews.com · hnonline.sk · novinky.cz · plus.rozhlas.cz · pulshr.pl · SeznamZpravy.cz