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Millions more drivers could be owed compensation in car finance mis-selling scandal as FCA issues major update

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Millions more drivers could be owed compensation in car finance mis-selling scandal as FCA issues major update

MILLIONS more drivers could be owed compensation in a car finance mis-selling scandal after a landmark legal case.

Lenders are set to be given more time to look at complaints after a court decision opened the floodgates to more claims.

An update on the car finance mis-selling scandal has been issued

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An update on the car finance mis-selling scandal has been issuedCredit: Getty

The Financial Conduct Authority (FCA) launched an investigation at the start of the year into whether motorists were unknowingly overcharged when they took out a loan to buy a car.

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This focused on Discretionary Commission Arrangements (DCAs) which gave dealerships an incentive to push customers towards pricier financing deals.

Those who bought a car, motorbike or van on finance before January 28, 2021 (when DCA was banned) could be owed thousands of pounds.

Now the regulator has set out plans today to extend the deadline by which lenders have to respond to complaints.

It follows a Court of Appeal ruling last month that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.

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The decision applies to more types of commission and not just DCA, meaning more drivers could be owed cash.

The FCA said firms are likely to receive a “high volume” of complaints following the judgment and that an extension is needed to deal with claims.

Close Brothers and Firstrand, the subject of the case, intend to appeal the Court of Appeal’s decision.

The watchdog also said it will write to the Supreme Court asking it to decide quickly whether it will permit lenders to appeal.

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In a statement published this morning, the FCA said: “Any complaint extension would allow them time to consider how these might be efficiently and effectively handled.

Martin Lewis On Car Finance Scandal

“This would help prevent disorderly, inconsistent and inefficient outcomes for consumers making complaints, motor finance firms and the market.”

Proposals are expected to be published in two weeks, which would mean the complaint extension is in place by mid-December.

Following the news today Money Saving Expert Martin Lewis has weighed in on what it means for drivers.

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Writing on X, formerly known as Twitter, he said: “It signals that the FCA is paving the ground to in future broaden the scope of its car finance investigation, so not only at the 40% of past claims that had DCAs (where dealers could increase their commission by increasing interest) but all commissions including fixed commissions.”

What is the FCA investigating and who is eligible for compensation?

By Jacob Jaffa, Motors Reporter

What is being investigated?

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The FCA announced in January that it would investigate allegations of “widespread misconduct” related to discretionary commission agreements (DCAs) on car loans.

When you buy a car on finance, you are effectively loaned the value of the car while you pay it off.

These loans have interest payments charged on top of them and are often organised on behalf of lenders by brokers – usually the finance arm of a dealership.

These brokers earn money in the form of commission – a percentage of the interest payments on the loan.

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DCAs allowed brokers to, to a certain extent, increase the interest rate on a loan, which in turn increased the amount of commission they received.

The practice was banned by the FCA in 2021.

Who is eligible for compensation?

The FCA estimates that around 40% of car deals may have been affected before 2021.

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There are two criteria you must meet to have a chance at receiving compensation.

First, you must be complaining in relation to a finance deal on a motor vehicle (including cars, vans, motorbikes and motorhomes) that was agreed before January 28 2021.

Second, you must have bought the vehicle through a mechanism like Personal Contract Purchase (PCP) or Hire Purchase (HP), which make up the majority of finance deals and mean you own the vehicle at the end of the agreement.

Drivers who leased a car through something like a Personal Contract Hire, where you give the car back at the end of the lease, are not eligible.

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Martin also said that it essentially means that “almost everyone” who has had car finance deals may have a complaint and be due money back.

He explained: “This potentially more than doubles the number of people involved, and would really start to look more like PPI scale of payouts (and a substantial threat to the car finance industry).”

The Payment Protection Insurance (PPI) scandal saw 16.5million people handed payouts totalling £38.3billion after banks and other financial institutions mis-sold PPI policies to millions of customers between 1990 and 2010.

The FCA has been unable to confirm how many people will now be possibly owed cash.

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Alex Neill, co-founder of consumer rights group Consumer Voice said: “The financial regulator has signalled it will allow motor finance providers more time to consider how to deal with complaints about all secret commissions, not just those that are discretionary.

“This is big news for consumers as it could mean significantly more money is owed to more people.”

“Anyone who has already been told by their finance provider they didn’t have a discretionary commission on their loan should now be asking if any commission at all was applied. If it was, they may be owed compensation.”

Delayed investigation outcome

The FCA had planned to publish the outcome of its investigation in September.

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However the publishing date has been pushed back to May next year and the date firms have to respond to customer complaints to December 4, 2025.

It’s worth nothing, the FCA’s decision to extend the deadline to December 4 next year is just when firms have to respond to any complaints.

Customers can still complain to their providers before this point, and in some cases, there are time limits for doing so.

You can find more information about any time limits on the FCA website.

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What is the Car Finance Discretionary Commission Scandal?

The Car Finance Discretionary Commission Scandal affects those who bought a car, motorbike or van on finance before January 28, 2021.

After this date, the city watchdog the FCA banned lenders from using “discretionary commission arrangements” (DCAs).

DCAs allowed brokers to increase interest rates on car finance loans, which in turn saw their commission bumped up.

It has been classed as an unfair practice because drivers weren’t told about the DCAs and therefore thought any deals were a fixed price that they couldn’t negotiate on.

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Anyone who took out a vehicle on finance before January 28, 2021, could have been unfairly paying more than they should have.

The FCA has now launched an investigation to see how many people have been impacted.

MSE’s website has a useful checklist on who might be in line for money back.

It also has a list of firms that are unlikely to have handed out dodgy deals and therefore don’t owe customers money.

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Among the major lenders which could be set to pay out compensation are Lloyds Banking Group, Bank of Ireland, Investec and Santander.

These banks are said to have set aside millions of pounds to help cover the costs of the payouts since the court case in October.

The Royal Bank of Canada has estimated that the industry’s bill for motor finance compensation could stretch to £13billion.

How to claim

Consumer website MoneySavingExpert.com has a page on its website with an email template you can use to complain to your firm.

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Or, you can complain directly to them without using the template.

It’s important to note that anyone who took out car finance should make a claim.

Plus those who claimed previously but had it turned down before should try again.

In the complaint, you should ask whether you were overcharged due to your broker getting paid a commission and ask the company to correct this if that is what happened.

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If you’re not satisfied with the company’s response, you can take your complaint to the Financial Ombudsman Service (FOS) for free.

You have until July 29, 2026, or up to 15 months from the date of their final response letter, whichever is longest.

Be wary of using a claims management firm to help you claw back any overpaid car finance as you’ll have to pay it a portion of any successful claim.

The FCA has previously said the total cost of redressing motorists impacted by the car finance scandal could cost firms between £6billion and £16billion.

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It means affected customers could get potentially £1,000s back in overpayments.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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We’re the £7bn lottery duo – we’ve seen it all from £196m lotto winner to man who won TWICE & most popular 1st buys

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We're the £7bn lottery duo - we've seen it all from £196m lotto winner to man who won TWICE & most popular 1st buys

KATHY GARRETT and Andy Carter are a £7billion duo.

That’s the astonishing total which the National Lottery’s longest-serving winners’ advisers have handed out to those lucky punters who have hit the jackpot.

Kathy Garrett and Andy Carter are part of a team of seven who visit every lottery player who wins more than £50,000

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Kathy Garrett and Andy Carter are part of a team of seven who visit every lottery player who wins more than £50,000Credit: Arthur Edwards / The Sun
Kathy dealt with builder Steve Thompson, 47, from Selsey, West Sussex, who won £105million on Euro-Millions in 2019

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Kathy dealt with builder Steve Thompson, 47, from Selsey, West Sussex, who won £105million on Euro-Millions in 2019Credit: PA:Press Association
Les Scadding and wife Samantha celebrate their £45million jackpot in 2009

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Les Scadding and wife Samantha celebrate their £45million jackpot in 2009Credit: Marc Giddings – The Sun

The pair have met more big winners than anyone else in the UK.

And to mark the lottery’s 30th anniversary they have revealed some of the secrets of the more than 5,000 happy winners who they have come to know as friends.

Kathy knows the identity of the mystery recipient of the biggest-ever prize — a mind-boggling £195,707,000 on the EuroMillions draw in 2022.

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Remarkably, the winner has managed to remain anonymous and Kathy will not give any clue to their identity.

READ MORE ON LOTTERY WINNERS

But she does say: “They’ve done very well and are doing very well.

Eiffel Tower

“They understand that it’s a lot of money for them and they want to give something back, but to do it in an anonymous way.

“It’s life-changing for anybody to win on the lottery but when you win that sort of money you need an awful lot of support and help, which they have had.

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“We guide them and introduce them to people that can help to make their journey a little bit easier.”

Paying off the mortgage is the next thing. But the lottery has paid for a lot of new hips, new knees, new teeth, new hair

Andy Carter

Andy, 50, has been a winners’ adviser for 18 years and has become a bit of a household name.

When winners call the National Lottery to claim their jackpot they will often ask: “Will Andy Carter be coming to see me?”

From reviving ‘dead’ pets to Ibiza benders and living in a caravan – how Lotto winners who scooped £194m splashed cash

Over the years Andy has found that winners tend to follow a similar pattern. He says: “Most will buy a new car straight away.

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“Quite a few people will put a deposit on a car before we even get there and want to know, ‘When’s my money hitting the account?’

“Paying off the mortgage is the next thing. But the lottery has paid for a lot of new hips, new knees, new teeth, new hair.”

“And laser eye surgery,” adds Kathy, 60, a mum of four from Kent.

One of Andy’s most memorable winners, Les Scadding, now 68, won a £45.5million EuroMillions jackpot in 2009, then invested some of it in Newport County FC in South Wales — and became club chairman.

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Remarkably, only one of the 5,000 winners they have dealt with wanted to tell no one — not even family.

Kathy says: “The reason he kept it a secret is that he wanted to surprise his partner and propose to her.

“He arranged to take her to Paris for the weekend and took her to a restaurant in the Eiffel Tower, where he proposed to her.

“Thankfully she said yes, and then he revealed that he’d also won the lottery. But he wanted her to accept his proposal before telling her he had won a million pounds.”

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Private jet

The winner booked his romantic holiday in France using an idea that Kathy came up with — a concierge service that make dreams come true for lottery winners.

She says: “It’s proved very popular because some of these winners have never been on a holiday before, or they get a chef in to cook Christmas dinner for all the family, maybe hire a private jet to fly off somewhere.

“Once somebody literally went 200 miles up the road in their private jet and never left the UK.

“We had a lovely couple who won a lot of money last year and they took the whole family away on a private jet — and the dog went with them.”

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Andy adds: “Someone said to me the other day, ‘What’s the point of me having this money if I can’t do stuff with the people I love?’.”

The duo’s phones often ping with photos of their big-winning clients on an exotic holiday.

Kathy says: “It’s lovely because you can see the difference their win is making to their lives and that they’re fully embracing it and enjoying it.”

Andy adds: “They could have thought of anyone but they think of you. There was a guy I dealt with who said, ‘I’m going to travel around the world and watch cricket’.

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“Now I haven’t spoken to him for years, but every so often he emails a picture. He’ll be in Barbados, Sri Lanka or Sydney, in the great sporting arenas of the world.”

Kathy and Andy are part of a team of seven who visit every lottery player who wins more than £50,000.

They take with them a book in which punters can record their memories of the win — and a bottle of champagne that comes out when all the formalities are completed.

Often during that first meeting winners’ phones will be constantly pinging as news leaks out that they have won the jackpot.

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Andy says: “Sometimes you turn up at people’s houses and the whole village or even the whole town knows.

You’ve got people knocking on the door when you’re there and messages are coming through saying, ‘Congratulations on your lottery win’.

The oldest winner I’ve paid was 105. It wasn’t going to make a massive difference to her life at that age but it gave her real pleasure to see that her family would benefit from it

Kathy Garrett

“The winner, who hasn’t gone public at this stage, will often look at their phone and say, ‘Oh, I haven’t seen him for years’.

“Nice news spreads fast and people are genuinely pleased. They like to know someone who’s won the lottery.”

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Kathy, who was once hugged so hard by a delighted winner that she feared he would crack her ribs, says: “The oldest winner I’ve paid was 105.

“She lived in a little house and she had all her family around her.

“It wasn’t going to make a massive difference to her life at that age but it gave her real pleasure to see that her family would benefit from it.”

Another of Kathy’s winners, Doris Stanbridge, from Dorking in Surrey, was 70 when she won the lottery’s Set For Life game, which pays out £10,000 a month for 30 years.

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Kathy says: “She will be 100 when she gets her last payment. She’s going to have a huge party if she makes it.

“Doris is great and really making the most of it, helping families and enjoying the holidays.” After 30 years, the odds of winning the lottery are just as vanishingly small as they have ever been, but Kathy and Andy say their big winners keep on playing — and some have hit the jackpot again.

Kathy says: “In 15 years I’ve paid five winners over £50,000 twice, which is absolutely incredible.”

Andy adds: “Last year I visited someone who had won and he said, ‘I think you may have seen my brother’.

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“Two brothers had won the lottery, a year apart. One had won £2million and the other just under a million.”

And Kathy recalls: “I had two sisters — one won the lottery jackpot and the other won £1million, four years apart.”

Very emotional

Many punters give up work the moment they win, but some can’t let go of their jobs so fast — including a butcher who scooped the jackpot.

Kathy says: “It was coming up to Christmas and people were coming to collect their turkeys and he didn’t want to let them down by saying, ‘I’ve got an appointment’.

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“He wanted to see me because he was going to get his lottery money but he couldn’t just shut up shop and focus on his win. So every two minutes he’d jump up to go and hand somebody their turkey.

“His customers had no idea he was disappearing into the back of the shop to see me.

“He stayed anonymous. He did carry on with the shop for a little while — and then changed direction.”

Andy says: “Builders are the ones that can’t walk away.

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“They are so loyal, they don’t want to let anybody down, and even though they could pay for somebody else to do the work, they go and do it themselves.”

Kathy dealt with builder Steve Thompson, 47, from Selsey, West Sussex, who won £105million on Euro- Millions in 2019. Amazingly, he kept on working until all his customers’ jobs had been completed.

Syndicates are fun. I once went to a funeral parlour with some undertakers who had won. I even went to the Greggs factory to meet workers who had won £100,000 on EuroMillions. It was like Willy Wonka in there

Andy Carter

She says: “He was very, very emotional. At the beginning he was in tears because he just wanted to carry on as normal. It was a huge amount and it just took him a little while to get his head around everything.

“He’s fine. The whole family are really happy and they’ve built their own home.

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“He wanted to help his friends still do the building work. Most winners are loyal — they’ve committed to something and they don’t want to let anybody down.

“So even though they have got over £100million now in their bank account they’ve still promised to fit the little old lady’s door for her up the road, and they want to carry on doing that.”

Andy says: “I have never met a winner who has told the boss to stuff his job.”

Over the years the pair have also paid out prizes to lots of family and workplace syndicates.

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Andy says: “Syndicates are fun. I once went to a funeral parlour with some undertakers who had won. I even went to the Greggs factory to meet workers who had won £100,000 on EuroMillions. It was like Willy Wonka in there.”

In 2012, a dozen bus drivers in Corby, Northants, won £38million on EuroMillions and did quit their jobs — eventually.

Andy says: “There’s been Tesco’s workers, teachers, nurses, dance teams and pub syndicates.”

Most big winners never forget the numbers that won them the jackpot.

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Some have the figures hidden within tattoos, others have even had them included in wrought-iron gates.

Mark and Ruth Chalmers, who scooped £1million on EuroMillions in 2018, had their winning Millionaire Maker code — MHSL49011 — carved into the stone wall outside their new home in Halifax, West Yorkshire.

Kathy says of the adviser team’s job: “We’re there for as long as we are needed.

“The bigger multi-million-pound winners stay in touch a bit more.

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“Some haven’t told a lot of people about their win, so they like to tell us about the big events in their life. It’s the best job in the world.”

Mark and Ruth Chalmers, who won £1million on EuroMillions in 2018, had their winning Millionaire Maker code carved into the stone wall outside their new home

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Mark and Ruth Chalmers, who won £1million on EuroMillions in 2018, had their winning Millionaire Maker code carved into the stone wall outside their new homeCredit: Anthony Devlin
Doris Stanbridge, from Dorking in Surrey, was 70 when she won the lottery’s Set For Life game, which pays out £10,000 a month for 30 years - she's planning a big 100th birthday

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Doris Stanbridge, from Dorking in Surrey, was 70 when she won the lottery’s Set For Life game, which pays out £10,000 a month for 30 years – she’s planning a big 100th birthdayCredit: James Robinson
In 2012, a dozen bus drivers in Corby, Northants, won £38million on EuroMillions and did quit their jobs — eventually

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In 2012, a dozen bus drivers in Corby, Northants, won £38million on EuroMillions and did quit their jobs — eventuallyCredit: Louis Wood – The Sun

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Four ways to teach kids how to budget and value their money

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Four ways to teach kids how to budget and value their money

GIVING your children pocket money is a great way to teach them how to budget.

And encouraging them to earn their pennies is also a valuable lesson in responsibility.

Four ways to teach kids how to budget and value their money

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Four ways to teach kids how to budget and value their moneyCredit: Getty

Here are some ideas to get kids managing their own cash.

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CHORES: Children love a cash reward for little jobs such as tidying their room or helping with the cleaning.

This can also help instil the idea of working for your money — plus you get a helping hand around the house.

However, some parents may prefer kids learning to do their bit without a financial incentive.

READ MORE MONEY SAVING TIPS

BANK ON IT: Handing over physical pocket money is fine, but as more businesses become cashless, a card might be easier. It offers more protection if it gets lost as it can be cancelled, whereas cash could be gone for good.

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From age 11, you can open a kids’ bank account, which is fee-free and comes with a debit card. Children are not allowed to go into an overdraft.

APPY SPENDING: There are a number of specific pocket money cards and apps which can be used by younger children, from the age of six.

Preloaded cards are similar to a debit card and the corresponding apps allow parents to keep an eye on where their kids are spending. You will usually get an instant alert when the card is used.

Some of these accounts come with a small monthly charge. However, there are free options. If you’re a NatWest customer, you can join Rooster Money for free, saving on the annual £19.99 charge. Or HyperJar offers a free prepaid debit card and app.

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SAVINGS: It’s important to educate youngsters on the benefits of saving if they’ve got their eye on an expensive purchase or have a special occasion, such as a holiday, coming up.

I’m eight-years-old and own my first HOUSE – I saved up my pocket money from chores to buy it & it’s now worth £500k

You can set up physical envelopes or jars for cash.

Alternatively, HyperJar lets you create individual digital pots for different things.

Setting up savings accounts together is a good opportunity to talk about the idea of earning interest on your money.

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  • All prices on page correct at time of going to press. Deals and offers subject to availability.

Deal of the day

Avon's Haul Of Fame beauty bundle is £47.50 until November 28

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Avon’s Haul Of Fame beauty bundle is £47.50 until November 28Credit: Avon

PICK up the Haul Of Fame beauty bundle for £47.50, worth £95.25, until November 28. Available from Avon reps or avon.uk.com.

SAVE: £47.75

Cheap treat

The Best cherry Bakewell mince pies are £2.75 for a pack of four at Morrisons

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The Best cherry Bakewell mince pies are £2.75 for a pack of four at MorrisonsCredit: Morrisons

TRY a new spin on a festive classic with Morrisons The Best Cherry Bakewell mince pies, £2.75 for a pack of four.

WHAT’S NEW?

ALDI has launched beers crafted from food waste.

Try Toast Brewing Another Round Session IPA, £1.99, or Freedom Brewing Misfits Summer Fruits Beer, £1.49.

Top swap

The gold cutlery set is £28 at Habitat

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The gold cutlery set is £28 at HabitatCredit: Habitat
This set from The Range is only £13.99

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This set from The Range is only £13.99Credit: The Range

GIVE your cutlery the Midas touch with this 16-piece set from Habitat, top, £28. Or the 16-piece gold set is £13.99 through The Range’s online marketplace, above.

SAVE: £14.01

Shop & save

Hobbycraft 32S sewing machine, down from £153 to £128

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Hobbycraft 32S sewing machine, down from £153 to £128Credit: Hobbycraft

STITCH up some savings with the Hobbycraft 32S sewing machine, down from £153 to £128 in-store and online.

SAVE: £25

LITTLE HELPER

LIGHT up your home ready for festivities with 25 per cent off all Christmas tree lights at Homebase.

The deal takes this 16-strand net down from £24 to £18.

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Hot right now

TAKE out a Sainsbury’s Bank pet insurance policy through Gocompare.com this month to get a £40 Sainsbury’s gift card.

PLAY NOW TO WIN £200

Join thousands of readers taking part in The Sun Raffle

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Join thousands of readers taking part in The Sun Raffle

JOIN thousands of readers taking part in The Sun Raffle.

Every month we’re giving away £100 to 250 lucky readers – whether you’re saving up or just in need of some extra cash, The Sun could have you covered.

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Every Sun Savers code entered equals one Raffle ticket.

The more codes you enter, the more tickets you’ll earn and the more chance you will have of winning!

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Asda shoppers rush to buy returning Christmas essential for kids that ‘will last for years’ – and it only costs £2

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Asda shoppers rush to buy returning Christmas essential for kids that ‘will last for years’ – and it only costs £2

PARENTS are flocking to buy this festive essential for kids, which only costs £2.

The Christmas Eve boxes from Asda are massively popular among savvy-shoppers who say they will “last for years”.

Asda's Christmas Eve box costs as little as £2

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Asda’s Christmas Eve box costs as little as £2
Buyers can nab these from an Asda shop

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Buyers can nab these from an Asda shopCredit: Getty

The box measures 27cm x 36cm x 12.6cm – meaning it has plenty of room to fill with trinkets.

Buyers can nab these from an Asda shop or online.

Though the website warns prices and promotions may vary when buying in-store.

As the big festive day quickly approaches, parents are on the hunt for a place to store their little one’s presents.

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And amid the ongoing cost of living crisis, Brits are on the lookout for cheap gift boxes and hampers.

But with gift boxes selling for £100 from John Lewis or £85 at Fortnum and Mason, many might be left out of pocket.

Luckily, Asda’s Christmas Eve box costs as little as £2 – that’s cheaper than certain chocolate bars.

One happy customer said: “Have bought these boxes for about 10 yrs now always look nice and are strong.”

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Whilst another commented: “These are perfect! Really good size and really good value for the price. Quite sturdy.”

For those with a sweet tooth the supermarket is also offering two boxes of Quality Street for just £9.

I’m a tight mum, my kids are getting yellow sticker deals as presents

Or for an even better deal, shoppers can get their hands on a chocolate advent calendar for a whopping £1.50.

This comes as B&M shoppers rush to fill their baskets with an item which is perfect for the upcoming festive season.

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Bargain hunters have been getting excited about Christmas tree plates which cost just 10p, having been reduced from £4.

One eagle-eyed shopper got their hands on one at their local store before spreading the word on social media.

They took to the Facebook group Extreme Couponing and Bargains UK group to let others know.

The person wrote: “Christmas tree platters 10p each in B&M.”

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On person commented: “If you see these please get me a couple xx.”

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How AAdvantage Became American Airlines’ Financial Lifeline

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What is the Average Credit Score in the UK

How American Airlines’ AAdvantage Program Became a Lifeline for the Airline Industry

When American Airlines launched the AAdvantage program in 1981, it set a precedent as the world’s first frequent flyer program. Originally designed as a way to reward loyal customers, the program has transformed into a core revenue source that has played a critical role in the airline’s survival during economic downturns. Today, AAdvantage represents much more than miles and rewards—it’s a central component of American Airlines’ financial strategy, especially as the airline navigates a challenging industry landscape.

The Evolution of AAdvantage: From Loyalty Perk to Business Pillar

AAdvantage was created with a straightforward goal: reward frequent travelers with miles that could be redeemed for flights. However, the program has since evolved into a multi-faceted business model that extends far beyond rewarding flyers. Today, members earn miles not just from flights, but through a vast network of partners including hotels, rental car companies, retailers, and co-branded credit card purchases. This diversification has allowed AAdvantage to become a significant revenue stream and one of American Airlines’ most valuable assets.

The turning point in the program’s evolution came when American Airlines realized that AAdvantage miles could be sold to credit card companies and other partners. Banks like Citibank and Barclays, for instance, purchase AAdvantage miles in bulk to offer as rewards to their cardholders, providing the airline with steady revenue streams independent of ticket sales. This strategy has allowed American Airlines to generate income from partnerships and consumer spending outside of the airline industry, securing its financial footing even when travel demand declines.

Financial Stability Through AAdvantage

AAdvantage has proven to be a cornerstone of financial stability for American Airlines, particularly during periods of economic hardship. In the third quarter of 2024, American Airlines reported record revenues of $13.6 billion, a success largely attributed to the strength of AAdvantage. By the end of the quarter, the airline held $11.8 billion in available liquidity, a testament to the program’s crucial role in supporting the airline’s financial health. Read more in American Airlines’ quarterly report.

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During the pandemic, when the airline industry faced an unprecedented crisis with plummeting passenger numbers, AAdvantage served as a financial lifeline. The airline used the loyalty program’s projected future revenue as collateral for a $10 billion loan, helping American Airlines avoid bankruptcy and remain operational. This move underscored the program’s value not only as a customer loyalty tool but as a strategic asset capable of securing American Airlines’ financial resilience.

The program’s success has had a ripple effect, making American Airlines a valuable partner for banks and credit card companies. Selling miles to these institutions has become a lucrative business model, providing consistent revenue that bolsters the airline’s finances and buffers it from economic fluctuations that impact ticket sales.

Partnerships and Customer Engagement

The AAdvantage program’s profitability is largely driven by its extensive network of partnerships, particularly with major financial institutions like Citibank and Barclays. By selling miles to these partners, American Airlines generates billions in revenue as banks offer AAdvantage miles to their customers through co-branded credit cards. These partnerships enable American Airlines to maintain steady income even during slow travel seasons, insulating it from the volatility of the airline industry.

Consumers benefit as well, with co-branded credit cards allowing them to earn AAdvantage miles on everyday purchases, such as groceries and dining. This structure creates a mutually beneficial relationship between American Airlines and its customers. For travelers, the program provides access to benefits like priority boarding, seat upgrades, and exclusive events, all of which enhance their experience and build loyalty to the airline.

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AAdvantage also provides American Airlines with valuable data on customer behavior and preferences, which the airline uses to tailor promotions and improve the customer experience. By analyzing this data, American Airlines can better understand what matters most to its customers, from preferred destinations to spending patterns, and leverage this insight to maintain customer loyalty in an increasingly competitive market.

Challenges and Adaptations: The Future of AAdvantage

Despite its success, AAdvantage faces challenges in adapting to evolving market dynamics and regulatory scrutiny. As frequent flyer programs have grown into significant revenue sources for airlines, they have also drawn regulatory attention. In September 2024, the U.S. Department of Transportation launched an investigation into frequent flyer programs to ensure they are fair and transparent for consumers. This increased scrutiny could lead to policy changes that may impact the future operations of AAdvantage and other loyalty programs.

Additionally, consumer expectations around loyalty programs are shifting. While AAdvantage has traditionally rewarded travelers with flight-related perks, today’s consumers seek flexibility, transparency, and sustainable practices. Many travelers now expect more options for redeeming points, not only for flights but for hotels, dining, and even non-travel-related rewards. AAdvantage has responded by allowing members to redeem miles for various travel-related expenses and by incorporating eco-friendly initiatives, such as carbon offset options, into its rewards structure.

As loyalty becomes increasingly digital and consumers become more discerning, AAdvantage continues to innovate. American Airlines has adapted the program to allow for personalized offers and promotions that reflect individual customer preferences. By continually enhancing the program, American Airlines positions AAdvantage as more than just a frequent flyer program; it is a dynamic platform for customer engagement and long-term loyalty.

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AAdvantage as a Model for Modern Loyalty Programs

American Airlines’ AAdvantage program has evolved from a simple rewards initiative into a powerful asset that supports the airline’s financial stability and competitiveness. By leveraging strategic partnerships, expanding customer engagement, and adapting to regulatory and consumer changes, AAdvantage has become integral to American Airlines’ business model. Its ability to generate revenue independently of ticket sales and adapt to changing customer preferences illustrates how loyalty programs can drive value far beyond their original purpose.

In a rapidly shifting economic landscape, AAdvantage is likely to remain a crucial component of American Airlines’ success strategy, providing a buffer against industry volatility and reinforcing the airline’s financial resilience. As other airlines seek ways to remain financially stable and competitive, the evolution of AAdvantage offers a compelling blueprint for how loyalty programs can grow beyond perks and points into critical business assets.

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Aldi brings back chocolate favourite just in time for Christmas – but warns shoppers ‘once they’re gone, they’re gone’

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Aldi brings back chocolate favourite just in time for Christmas - but warns shoppers ‘once they’re gone, they’re gone’

ALDI shoppers are rushing to bag one of the retailer’s most popular festive items that have been brought back this year.

The discount retailer’s Christmas mascot Kevin the Carrot is back on screens and in stores after his television debut in 2016.

Aldi’s ‘sell-out’ chocolate advent calendar has returned to stores this year

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Aldi’s ‘sell-out’ chocolate advent calendar has returned to stores this yearCredit: Aldi
Fans of Aldi's Christmas mascot have already raved about the new calendar

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Fans of Aldi’s Christmas mascot have already raved about the new calendarCredit: ALDI

The animated vegetable has taken on several missions since his arrival, making Brits fall in love with the character.

As well as reviving him this year, Aldi has also brought back the Kevin the Carrot advent calendar described as a “seasonal sellout.”

Countdown to Christmas with Kevin,” Aldi tells fans.

Behind each door, customers will find a chocolate member of Kevin’s extensive vegetable family.

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Aldi calls it “the perfect morning ritual for kids and grown-ups alike throughout December.”

But, shoppers will have to be quick because “once they’re gone, they’re gone.”

The advent calendar which hit shelves on November 7 has already been scooped up by hundreds of shoppers, some of whom have been spotted online trying to re-sell the item for a profit.

A Facebook page dedicated to bargains urged followers to “Pick up this Kevin The Carrot Advent Calendar for £1.49 at Aldi.”

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“Omg!!! Didn’t know these existed!” one excited shopper commented under another post.

“Diane you’d better make that 15 advent Calendars.”

“I’ve got a Kevin the Carrot advent calendar. I got mine the other day. I’m a big fan of Kevin the carrot,” another added.

“If you don’t get me one of these I’ll be fuming,” a third said, tagging a member of their family.

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One fan just simply wrote: “Want one.”

OTHER FESTIVE TREATS

And it’s not just people who can enjoy counting down to Christmas with a daily treat supplied by Aldi.

Beloved pets can get in on the fun too with Langham’s Meaty Dog Biscuit Advent Calendar which hit Aldi’s shelves on October 27.

How to save money on Christmas shopping

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Consumer reporter Sam Walker reveals how you can save money on your Christmas shopping.

Limit the amount of presents – buying presents for all your family and friends can cost a bomb.

Instead, why not organise a Secret Santa between your inner circles so you’re not having to buy multiple presents.

Plan ahead – if you’ve got the stamina and budget, it’s worth buying your Christmas presents for the following year in the January sales.

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Make sure you shop around for the best deals by using price comparison sites so you’re not forking out more than you should though.

Buy in Boxing Day sales – some retailers start their main Christmas sales early so you can actually snap up a bargain before December 25.

Delivery may cost you a bit more, but it can be worth it if the savings are decent.

Shop via outlet stores – you can save loads of money shopping via outlet stores like Amazon Warehouse or Office Offcuts.

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They work by selling returned or slightly damaged products at a discounted rate, but usually any wear and tear is minor.

The £3.99 advent calendar contains 24 treats with four different flavours – Chicken, Lamb, Duck, and Beef.

And for those who still just can’t get enough of Kevin, there are other festive offerings from the much-loved vegetable mascot.

There is a new collection of Kevin the Carrot plush toys featuring a moustachioed Kevin and his partner Katie who has lipstick and a bow.

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They are £3.99 with their outfits reflecting their disguises from this year’s Aldi advert as they try to save Christmas from Dr Humbug who also has a plushy toy in the middle aisle.

There are also Kevin and Katie tree decorations, pyjamas, and a children’s book.

Jemma Townsend, Marketing Director at Aldi UK, said: “Would it even be Christmas without Kevin the Carrot on our screens?

“We’re delighted to bring back everyone’s favourite carrot for a ninth year to help the nation get into the Christmas spirit.”

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Pets can even get in on the festive fun with Aldi's Dog Biscuit advent calendar

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Pets can even get in on the festive fun with Aldi’s Dog Biscuit advent calendar
There are other Kevin-themed Christmas treats in stores

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There are other Kevin-themed Christmas treats in stores
The retailer has warned shoppers to rush to buy the popular advent calendar as it will only be available while stocks last

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The retailer has warned shoppers to rush to buy the popular advent calendar as it will only be available while stocks lastCredit: Getty

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Inside Dave Portnoy’s $150M Barstool Empire

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Inside Dave Portnoy’s Wealth: How the Barstool Sports Founder Built a $150 Million Empire

Dave Portnoy is best known as the candid and sometimes controversial founder of Barstool Sports. Though his fans love his outspoken personality on the “BFFs” podcast and his reputation as a Swiftie, they often overlook his role as the CEO and driving force behind Barstool Sports. Over two decades, Portnoy has grown Barstool into a multi-platform media powerhouse, bringing him immense success and a net worth estimated at $150 million.

How Dave Portnoy Built Barstool Sports from the Ground Up

Portnoy’s journey to wealth began in 2003 when he launched Barstool Sports as a print publication. Initially focused on fantasy sports, gaming advertisements, and sports commentary, it was a niche publication targeted at Boston’s sports-loving community. In 2007, Portnoy took Barstool online, a move that proved transformative. The brand expanded from print to digital, reaching an audience far beyond Boston and allowing for rapid growth in a digital media landscape hungry for fresh content.

As Portnoy diversified Barstool’s offerings, the brand evolved into much more than a sports site. Today, Barstool includes podcasts, videos, gambling content, merchandise, branded alcohol products, and even television shows. The platform has become a hub for both sports and pop culture, attracting millions of followers on social media and maintaining a strong, engaged fan base.

Portnoy’s hands-on approach and knack for tapping into popular trends helped Barstool expand further. His “One Bite” pizza reviews, where he samples and rates pizzas from various restaurants, have amassed a cult following, increasing his personal brand and helping to build Barstool’s loyal fanbase.

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Partnerships, Acquisitions, and the $450 Million Deal with Penn National Gaming

In 2016, Barstool Sports attracted major investment when The Chernin Group acquired a majority stake in the company. This influx of capital allowed Barstool to scale even further, expanding its reach and brand influence. However, the most significant deal came in 2020 when Penn National Gaming, a major player in the gaming industry, acquired a 36% stake in Barstool for $163 million. This investment valued Barstool at a staggering $450 million, underscoring its growth from a small print publication to a media empire.

The deal with Penn National Gaming marked a new era for Barstool, positioning it as a key player in the sports betting world. Penn’s partnership allowed Barstool to launch the Barstool Sportsbook app, enabling fans to engage in sports betting, a lucrative area of the sports entertainment industry. As the U.S. expands sports betting legalization, Barstool Sportsbook has become a significant revenue generator for both Barstool and Penn National Gaming.

However, in a surprising turn of events, Portnoy regained full control of Barstool in 2023 when he bought back the company from Penn for just $1. This strategic move came after Penn shifted its focus to a partnership with ESPN for its sports betting ventures. For Portnoy, reclaiming ownership of Barstool provided the freedom to steer the company independently, a position he seems to relish.

Dave Portnoy’s Podcasting Success and Other Ventures

Apart from Barstool Sports, Portnoy’s personal brand has been bolstered by his ventures into podcasting and other media. His hit podcast “BFFs,” cohosted with Brianna “Chickenfry” LaPaglia and Josh Richards, has been wildly successful, blending pop culture, social media, and insider gossip. On November 13, 2024, Portnoy announced his departure from “BFFs,” leaving a lasting mark on the show and its fans.

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Portnoy’s media presence extends beyond Barstool’s channels. His bold, no-filter style has resonated with audiences and attracted fans who appreciate his authenticity. His pizza reviews, for instance, have become iconic, with fans frequently recognizing him as “the pizza guy” as much as the CEO of Barstool.

Portnoy’s ventures have not been without controversy, and his outspoken nature has occasionally led to clashes with other public figures. Nevertheless, his approach has consistently drawn attention and bolstered his personal brand, which remains closely tied to Barstool’s identity.

The Breakdown of Dave Portnoy’s Net Worth

As of 2024, Portnoy’s net worth is estimated to be around $150 million. Much of this wealth can be attributed to his stake in Barstool Sports, along with income from his various media projects and ventures. Portnoy’s wealth is a reflection of his entrepreneurial spirit, his ability to capitalize on cultural trends, and his knack for building a brand that resonates with audiences.

His investments outside Barstool have also contributed to his financial success. While not all of Portnoy’s ventures are publicly known, his influence and wealth have allowed him to invest in various sectors and expand his financial footprint beyond Barstool’s media reach.

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Despite his wealth, Portnoy has maintained a strong connection to his audience, often presenting himself as a relatable figure who is unafraid to share his opinions. This transparency has helped him retain the loyalty of Barstool’s fans, who view him as a central part of the brand’s identity.

What’s Next for Dave Portnoy and Barstool Sports?

With Portnoy back in full control of Barstool Sports, the future looks promising for both him and the company. Freed from corporate restrictions, Portnoy has the flexibility to continue expanding Barstool’s brand in ways that align with his original vision. His reacquisition of the company from Penn National Gaming symbolizes his commitment to keeping Barstool unique and fiercely independent.

Portnoy’s focus will likely remain on expanding Barstool’s reach in sports, entertainment, and lifestyle content, while also leveraging his own personal brand. Given the success of Barstool Sportsbook, sports betting could remain a priority, especially as more states legalize betting and the industry continues to grow.

As Portnoy himself has said, “Barstool is my life’s work.” With his hands firmly back on the reins, there’s little doubt he will continue to grow both Barstool and his personal empire, solidifying his place as one of the most influential figures in modern digital media.

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