UK FCA says car finance legal challenge hearing unlikely before October

The UK FCA said a tribunal hearing on legal challenges to its £9.1bn car finance compensation scheme is unlikely before October and warned lenders to prepare for the possibility the scheme could be scrapped. Four groups, including Mercedes‑Benz and Volkswagen and a consumer group, have challenged the FCA’s plan; other lenders such as Lloyds, Barclays and Santander’s UK arm accepted the scheme and set aside billions. The FCA said it is discussing suspending some elements of the scheme while keeping preparatory work and flagged a potential tribunal decision in mid‑November, creating ongoing regulatory uncertainty for UK banks and auto finance exposure.