The UK Car Loan Scandal That Could Cost Banks Billions

Source: International Business Times

Banks may have to pay out tens of billions of pounds in compensation for controversial car loans AFP Banks may have to pay out tens of billions of pounds if the British Supreme Court upholds a judgment ruling controversial car loans are unlawful, in a case beginning in April. These loans incentivised car dealers to offer higher interest rates in return for a higher commission, without sufficiently informing borrowers. Consumer association Which! estimated that millions of drivers would become eligible for compensation if the UK's highest judicial authority sides with borrowers.