Bank of Ireland investors fear UK car finance cost will dwarf tracker scandal

  • 📰 IrishTimes
  • ⏱ Reading Time:
  • 46 sec. here
  • 6 min. at publisher
  • 📊 Quality Score:
  • News: 36%
  • Publisher: 98%

Bank-Of-Ireland News

Financial-Conduct-Authority,Aib,Central-Bank-Of-Ireland

Landmark court of appeal ruling piles pressure on UK regulator to impose large compensation scheme on lenders

A UK court ruling over commissions paid on motor finance could potentially leave Bank of Ireland with a large compensation bill. Photograph: PAhas shrunk its retail UK loan book by almost a third to €16 billion since the onset of the pandemic four years ago, as it pursues a “value over volume” strategy in a cut-throat market.

Your work questions answered: My hours have been cut but someone new has been hired. Can my employer do this?It’s a jewel in what remains of the bank’s crown in the UK. Northridge, based in Belfast, made net profit last year of £39.9 million – equating to 1.5 per cent of its total assets. That was 50 per cent higher than the wider group’s return on assets in an exceptional year amid elevated interest rates. It was also more than double the average 0.

The court said it was unlawful for a car dealer to receive a commission from a motor finance lender, if the customer had not given informed consent. This has set a bar higher than required by the FCA. The ruling has undermined this. As it stands, the current ruling piles pressure on the regulator to impose a large compensation scheme on lenders. But how can the FCA announce its findings until there is legal certainty on the test cases?

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of Ireland pauses new UK car finance offers after shock industry rulingBank’s UK car finance arm Northridge Finance pauses new lending ‘for a short period’ following court of appeals ruling relating to existence and size of commissions
Source: IrishTimes - 🏆 3. / 98 Read more »