U.K. motor finance companies are braced to pay out £8.2 billion in compensation for selling unfair car loans to 14 million customers between 2007 and 2024. This follows a U.K. Supreme Court ruling on Aug. 1 that the companies had broken laws and regulations by failing to disclose important information, which denied consumers the opportunity to shop around for better deals or negotiate.
Compliance managers must ensure current and future sales practices follow legal and regulatory rules, and help management prepare to meet compensation requirements. However, warnings about predatory and dishonest practices among U.S. car loan companies indicate that the problem could be global – and compliance teams in the sector worldwide should take note.
