Britain's car finance industry is in crisis – with banks bracing for billions in payouts

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The crisis has prompted comparisons to Britain's PPI scandal, which was estimated to have cost banks more than £50 billion ($63.8 billion).

Britain's motor finance industry is in disarray, with analysts warning of worst-case scenarios similar in magnitude to the country's costliest consumer banking scandal.

View looking towards the Royal Exchange and in the City of London where the glass architecture of the tower 22 Bishopsgate disappears into mist on 6th November 2024 in London, United Kingdom.Britain's motor finance industry is in disarray, with analysts warning of worst-case scenarios similar in magnitude to the country's costliest consumer banking scandal.

It urged motor finance groups to consider setting aside financial provisions to resolve the high volume of complaints. "If the ruling stands, the FCA will have to change its rules on disclosures. Initially, the FCA pointed out that the matter should not take similar proportions to the PPI mis-selling, but should the new ruling stand, worst case scenarios do come close to the same magnitude in impact."Benjamin Toms, U.K.

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