UK More Likely to Intervene on Motor Finance as Probe Delayed.

The UK's Financial Conduct Authority (FCA) has stated that it is more likely to intervene in motor finance practices, potentially leading to compensation for customers who were sold car loans by firms such as Lloyds Banking Group, Close Brothers Group, and Barclays. The FCA's probe has been delayed due to data delays and a legal challenge from Barclays, and the regulator now plans to outline the next steps of the review in May 2025. Lloyds has already set aside £450 million for possible compensation, while Close Brothers has suspended dividend payments for the 2024 financial year. Barclays has not made a provision, citing its low market share and lack of complaints. The FCA has received the necessary data for its assessment, but the timeline has been affected by the legal challenge. The FCA will also extend the pause on the eight-week deadline for motor finance firms to respond to complaints until December 2025. [Extracted from the article]