LLOY lawsuits over car loan mis-selling

What happened: Consumer Voice, a consumer group, is suing the Financial Conduct Authority (FCA) over a £9.1bn compensation scheme for victims of the UK car loan scandal. Lawyers for Consumer Voice argue that the scheme massively undercompensates victims. The FCA is set to publish final rules on the compensation scheme later this month, detailing how millions of drivers can claim.

Market impact: The litigation and potential overhaul of the compensation scheme could impact financial institutions involved in car finance, such as banks and car manufacturers' financial arms. These companies may face increased compensation costs, impacting their profitability. The case also puts pressure on the FCA, potentially affecting its reputation and future regulatory decisions.

What to watch next: The FCA's final compensation rules, due later this month, will clarify the extent of the payouts and the process for claiming. Additionally, the court's response to Consumer Voice's lawsuit will determine if the compensation scheme is revised, further impacting affected financial institutions.