Car owners who could be owed thousands face delay over finance probe

manchestereveningnews.co.uk:

The UK's financial watchdog has announced an extension to its investigation into potential overcharging on car loans. The Financial Conduct Authority (FCA) is allowing motor finance companies additional time to address customer complaints after it launched a review earlier this year into concerns around mis-sold car finance.

It is thought that thousands of motorists may have been overcharged for car loans through discretionary commission arrangements, which allow brokers to hike interest rates to earn higher commissions.

The controversial selling practice was was banned in 2021. READ MORE: Greggs hikes prices of popular bakery items READ MORE: Martin Lewis slams decision to end universal DWP winter fuel payments The FCA is now seeking evidence of widespread malpractice and considering whether to launch a formal redress scheme to compensate affected individuals in an "orderly and efficient way".

On Tuesday, July 30, the authority revealed it was examining thousands of records dating back 14 years. However, due to delays in obtaining the necessary data, the FCA has announced it will not be able to provide an update on the review by the end of September as initially expected.