Treasury steps in to protect car loan firms’ payouts
The vast majority of new cars sold in the UK, and many second-hand ones, are bought with finance agreements.
Some analysts estimate that total payments could reach as much as £30bn in a scandal that could end up being the largest compensation scheme regarding financial products since the payment protection insurance (PPI) saga.
As well as the size of the compensation bill, the Treasury’s submission to the Supreme Court – which it confirmed to the BBC it has received – includes concerns that any uncertainty could undermine the UK’s competitiveness.
It is understood that the Treasury’s intervention could be to show that the UK is still a good place to do business and emerges as Chancellor Rachel Reeves is at the World Economic Forum in Davos, Switzerland to speak to world leaders.
Her budgetary decisions have not buoyed investors’ confidence in the UK economy at as borrowing costs have soared.
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