Dec 3 (Reuters) – Britain’s financial regulator will lift the pause on handling motor finance complaints on May 31, 2026, two months earlier than initially proposed, as it finalises a compensation scheme for those hit by the mis-selling scandal, it said on Wednesday.
The Financial Conduct Authority had paused processing complaints in January 2024 while it assessed whether motor finance lenders and brokers had adequately disclosed commissions.
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The scandal, which dates back to 2007, involves lenders such as Lloyds (LLOY.L), Close Brothers (CBRO.L) and Barclays (BARC.L), that are accused of using excessively high interest rates in car-finance arrangements and including extra bonus payments.
The companies did not immediately respond to a request for comment.
The regulator has estimated that the industry will have to pay about 11 billion pounds ($14.57 billion) in compensation and administrative fees.
($1 = 0.7549 pounds)
Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Harikrishnan Nair
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