A HUGE update in the car finance mis-selling scandal has been issued.

The Financial Conduct Authority (FCA) has been carrying out an investigation into whether motorists were unknowingly overcharged on historical loans.

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Those who bought a car, motorbike or van on finance before January 28, 2021, could be owed potentially thousands of pounds.

The FCA is in the process of finding out how many motorists have been affected and what compensation customers will receive.

Today, in an “unexpected” decision in one of the motor finance test cases, a court has sided with drivers against the banks and lenders.

The Court of Appeal ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.

The judgment said that in order for consent, the consumer would need to be told all material facts that might affect their decision, including the amount of the commission and how it was to be calculated.

The judges ruled that did not happen in any of these cases.

Three cases were merged earlier this year, the Hopcraft case is against merchant banking group Close Brothers, Wrench is against South African Firstrand Bank, and Johnson is against Firstrand Bank and Motonovo Finance.

The court revealed today that it has unanimously allowed all three appeals.

The repercussions of today’s judgment are expected to resonate throughout the motor finance sector.

The FCA is thought to be closely watching the development as it continues its investigation into the scandal.

“This ruling is a massive win for consumer justice,” said Sam Ward, Director at Sentinel Legal, a consumer rights law firm.

“For too long, lenders have taken advantage of consumers through complex, unfair finance deals. This decision finally puts power back into the hands of consumers, forcing banks to face the consequences of their actions.”

While Stephen Haddrill, director general of the FLA, which represents motor finance lenders said: “This is a significant and unexpected judgment, the implications of which stretch far beyond the motor finance sector, making it an issue that demands the immediate attention of the FCA.”

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

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

The FCA says it has had to push back the deadline due to it taking “longer than expected to get the data” it needed from implicated car finance firms.

Investigators have also been unable to complete their review because of a pending court case surrounding one of the complaints.

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

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.

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.

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.

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

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.

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.

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

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Money Marketing’s Weekly Must-Reads: Top 10 Stories

This week’s top news highlights include potential “experimental” tax initiatives from the Chancellor in the upcoming Budget and the FCA’s recent cautionary interviews with 20 financial influencers promoting financial products.



Chancellor might create ‘experimental’ new tax for the Budget

Chancellor Rachel Reeves may introduce a new “experimental” tax in the 30 October Budget, targeting ultra-wealthy individuals.

James Jones-Tinsley of Barnett Waddingham noted that such a measure could help address the £22bn “black hole” in public finances, but warns of potential legal challenges.

With limited options due to Labour’s pledge not to raise national insurance, income or VAT taxes, Reeves faces pressure to find alternative revenue sources. Financial anxiety is rising, with many seeking advice on potential tax changes.

FCA interviews 20 finfluencers under caution for touting financial products

The Financial Conduct Authority (FCA) recently interviewed 20 “finfluencers” under caution for allegedly promoting financial products illegally.

Operating on social media, finfluencers often lack FCA authorisation, posing risks to young audiences who trust their advice. The FCA has also issued 38 alerts against finfluencer accounts with potentially unlawful content.

Regulators and industry leaders support the FCA’s crackdown, emphasising the need for caution when following social media-based financial advice and the risks of unregulated promotions targeting vulnerable individuals.

‘Unprecedented shift’ in fee models used by financial advice firms

A NextWealth report reveals an “unprecedented shift” in financial advice fee models, with 71% of firms still using asset-based fees, though this is declining.

Subscription fees have surged, used by 22% of firms, up from just 1% in 2023. Overall client costs rose to 1.89%, driven mainly by ongoing advice fees. Larger firms are less likely to charge initial fees and set higher thresholds for client portfolios.

While 92% of advisers feel confident delivering value, only 26% trust regulatory effectiveness.

Inheritance tax receipts rise steeply ahead of Budget: reaction

Inheritance tax (IHT) receipts rose to £4.3bn from April to September 2024, up £0.4bn year-on-year, amid stagnant nil-rate bands since 2009.

Rising IHT revenue has fuelled speculation ahead of the Autumn Budget, with experts predicting potential reforms, including changes to business and agricultural property reliefs and tightened gifting rules. Analysts note a broader IHT burden beyond the wealthy due to inflation.

Other tax receipts also increased, with income tax, capital gains tax and NICs reaching £226.8bn, up £6.2bn.

Söderberg & Partners takes minority stakes in four more IFA firms

Söderberg & Partners has acquired minority stakes in four UK IFA firms—George Square, Cheltenham IFA Ltd, Bluezone Capital Ltd and Alexander Bates Campbell (ABC)—as part of its UK expansion strategy.

The Swedish wealth manager aims to support these firms’ growth, which collectively manage over £920m in client assets. CEO Gustaf Rentzhog highlighted the UK advice market as a strategic focus.

Söderberg & Partners recently received a £225m investment from KKR and TA Associates to further its growth in the UK and Spain.

How to combat quiet quitting and plug the employee engagement gap

Employee engagement in the UK has hit a decade low, with just 10% of employees feeling engaged.

Gallup reports that “quiet quitting” affects six in ten workers, as more employees feel disconnected. Simon Evans, director at Clearcut Consulting – Engage First, suggests companies address disengagement through authentic leadership, structured engagement programmes and recognition. He argues that fostering purpose and connection can counteract quiet quitting and drive sustainable growth.

Engagement remains crucial for organisational success, boosting profitability by up to 21%.

Government urged to ‘keep up the momentum’ after pensions dashboard update

Industry experts have urged the UK government to maintain momentum on the Pensions Dashboard Programme following an update from pensions minister Emma Reynolds.

The MoneyHelper Pension Dashboard service will launch before commercial dashboards, but no public launch date is confirmed. Pension schemes must connect to the dashboard by October 2026, with earlier connections encouraged from April 2025.

Experts emphasise that multiple dashboards are essential for user engagement and effective tracking of pension savings, highlighting the initiative’s potential to transform pension awareness and accessibility.

Wealthtime partners with Wipro and GBST on platform upgrade

Wealthtime has partnered with Wipro and GBST to enhance its platform technology, merging the Wealthtime and Wealthtime Classic platforms into a unified brand.

The collaboration will use a co-delivery model to offer comprehensive platform services, transferring Wealthtime’s Operations and Technology functions to Wipro’s new UK centre of excellence. This upgrade aims to improve service standards through automation, benefiting advisers and investors alike.

The deal also extends Wealthtime’s 15-year partnership with GBST, facilitating rapid platform enhancements and future-proofing technology for clients.

Guardian sets out adviser strategy for 2025

Guardian has unveiled its adviser strategy for 2025, focusing on strengthening relationships with advisers and firms to ensure positive customer outcomes.

Executive chairman and interim CEO Peter Mann emphasised the shift from rapid growth to consolidation, aiming to maximise value from its distribution and product offerings amid current economic challenges. Guardian’s products, now available on major protection panels, are designed to provide certainty at the point of claim.

The strategy marks a new phase for the insurer, following the recent departures of CEO Katya MacLean and marketing director Jacqui Gillies.

Defaqto: Four big predictions ahead of the Budget

Ahead of the upcoming Budget, Defaqto analyst Richard Hulbert outlines four key government objectives: addressing a £22bn fiscal gap, reducing dependency on state support within the pension system, promoting financial self-reliance among citizens and encouraging investment in UK businesses.

Hulbert’s predictions include integrating side-car cash accounts into pension schemes, re-evaluating tax-free cash allowances, replacing pension tax relief with a flat rate top-up and simplifying ISAs to incentivise investment in the UK economy. These changes aim to enhance financial stability and support for individuals.

THOUSANDS of elderly customers at a major building society risk being left behind after it confirmed it is axing a key service.

In an email to customers, Nationwide said that its Loyalty Saver account holders will no longer be able to use a passbook to manage their savings account.

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These savings accounts are reserved for customers who have used the bank for many years and often reward them with top interest rates.

Nationwide announced that it was axing passbooks in July but it had not yet confirmed the exact date it would do so until now.

Passbooks provide a vital lifeline to thousands of older customers who are unable to bank online or by mobile app.

The books are issued by a bank or building society and allow the account holder to keep a physical record of how much money they have paid in and taken out of their account.

They can also be useful if you want to limit impulse spending as there are a lot more steps to take with each transaction.

In spite of this, Nationwide has confirmed that they will be axed from February 6, 2025.

But as more banks move towards digital banking they have decided to stop offering passbooks.

Barclays and Santander both decided to scrap passbook savings accounts, which are no longer available to new customers.

Meanwhile, Nationwide has already stopped offering new passbook accounts to customers.

The building society said only 2% of its 16 million customers still use passbooks, which is equivalent to around 120,000 people.

Dennis Reed, a campaigner at Silver Voices, said: “Here is another example of a finance company telling older customers to get lost, we can’t be bothered with you.

“The local building society branch with a trusty passbook provides a good, friendly and safe banking service.

“We have no objection to digital banking, which has its advantages, but there should always be a face to face non-digital alternative available.”

What did Nationwide tell customers?

Nationwide said: “After February 6, 2025, if you had a passbook you won’t be able to use it anymore.

“But you can still manage your account in a branch, if that’s what you like to do.”

It also told customers that their account details and the way they use their account will change.

For example, customers may be given a new sort code and account number.

It confirmed that the changes will not affect the customer’s interest rate.

Automatic payments, such as direct debits, which enter their savings account each month will not be impacted.

Can I still bank in branch?

Customers will still be able to manage their account at one of the bank’s branches.

Nationwide has pledged to keep branches open in every town and city where it currently has one until 2028.

Paper bank account statements can also be provided in store.

The bank has also launched a new savings wallet, which comes with its branch savings account.

Nationwide said: “If you like using your passbook and would prefer something similar to keep track of your savings, we may have another branch savings account that could be right for you.

“It comes with a savings wallet that has a pocket for mini statements and a card.”

For more information about the account visit your local branch.

You need to be a permanent UK resident to open one of these accounts.

Customers can also manage their account through internet banking or via the Nationwide banking app.

It is understood that the company will be taking on temporary staff to help with the transition from the old passbooks to the new savings wallets.

The news comes after Nationwide announced that it was axing passbooks in July.

At the time Nationwide said that it wants to “modernise” passbooks next year, with the process expected to take seven months.

A Nationwide spokesperson said: “We are modernising passbooks rather than removing them, but while they are changing, banking in branch isn’t.

“We are maintaining the benefits our passbook customers value most – face-to-face service and having a physical record of transactions.

“As the UK’s largest building society, we are investing in our systems so we can offer the products and services our customers expect from a modern mutual.”

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

Global insurance brokerage Arthur J Gallagher & Co has acquired London-based investment consulting firm, Redington Ltd.

The terms of the transaction were not disclosed.

Redington provides investment, research and technology services to pension funds, wealth managers and institutional investor clients primarily in the UK.

Following the acquisition, Redington CEO Sylvia Pozezanac and her team will remain in their current location.

They will report to David Piltz, head of Gallagher’s UK employee benefits and HR consulting operations.

Patrick Gallagher Jr, chairman and CEO of Gallagher Insurance, said: “As a leader in the investment consulting space, Redington brings exceptional talent and represents a fantastic cultural fit.

“Their deep capabilities in modelling and investment market research will enhance our existing consulting services and help our clients achieve superior financial security outcomes.”

Arthur J Gallagher & Co is a global insurance brokerage, risk management and consulting services firm.

The US-based brokerage provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

The Redington acquisition is the latest it has made in the UK corporate advisory space. It recently acquired Buck UK, an employer solution business.

BEER lovers who hanker for the days when a pint cost just £2 should head to Wrexham, a study found. 

Famous for its football club, owned by Hollywood stars Ryan Reynolds and Rob McElhenney, it tops the table for budget bevvies.

It comes after official data released this month showed the average price for a pint of lager in the UK was £4.79 – a staggering 140% pricier than the same tipple in the Welsh city.

The last time British drinkers parted with an average of £2 for a pint of beer was in the year 2000, Office for National Statistics figures show. 

Next best value spot for a pub crawl in 2024 is Bury, Greater Manchester, where a pint of beer is typically priced £2.75.

Nearby Bolton (£3.10), Blackpool, Lancs (£3.25) and Kilmarnock in Ayrshire, Scotland (£3.25) round off the big five savers for ale fans.

North of the Border beer hotspots Dunfermline and Glenrothes, where pub-goers can blow the froth off a cold one for just £3.40, Hull, East Yorks (£3.47), Northampton (£3.50) and Scottish town Ayr (£3.50) complete the top 10.

The data, collated by hospitality supply firm Alliance Online, covers draught lager, other keg beers, and traditional cask real ale.

Researchers found the cheapest pint in Wrexham at Wetherspoon watering hole The Elihu Yale, where a pint of Bud Light or Worthington’s Creamflow was £1.99, just 10 minutes’ walk from the Red Dragons’ STōK Racecourse stadium.

While landlady at The Long Pull, Lisa Lock, said: “Cost of living is a big one for the whole industry, but we manage to keep our prices as low as possible and the customers keep coming back.”

Elsewhere, Glyn’s Bar, where Wrexham supporters enjoy matchday bevvies, said it served pints for just £2.30 on Thursdays.

The report said: “The Welsh city of Wrexham is crowned the cheapest place in the UK for a beer.

“Famous for Wrexham AFC, headed up by Hollywood stars Ryan Reynolds and Rob McElhenney, their fans will be happy to know that they have access to bargain beer after a match.”

Alliance Online marketing manager Rachael Kiss added: “Our study shows that customers can still very much get a bargain beer if they look for one.”

You can read the full list below:

• Wrexham, Wales – £2.00
• Bury, England – £2.75
• Bolton, England – £3.10
• Blackpool, England – £3.25
• Kilmarnock, Scotland – £3.25
• Dunfermline, Scotland – £3.40
• Glenrothes, Scotland – £3.40
• Hull, England – £3.47
• Northampton, England – £3.50
• Ayr, Scotland – £3.50

Why have beer prices risen?

Prolonged periods of high inflation have led the price of a pint to rise over the past few years.

World issues such as Russia‘s invasion of Ukraine also mean the price of barley, which is a key ingredient in beer, has risen.

These factors, coupled with rising energy costs, have meant that many pubs and bars have had to raise the cost of pints to cover their own overheads.

This has damaged the UK hospitality sector with many businesses forced to close for good as punters can no longer able to afford a trip to their local.

THOUSANDS of parents can get free cash worth up to £125 to cover the cost of food this half term.

The help comes via the latest round of the Household Support Fund which is worth £421million.

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The fund has been shared by the Department for Work and Pensions between councils across England.

They have until the end of March next year to distribute their share of the cash.

Each local authority gets to decide who to give help to, and what type of help to offer.

Some are paying people money direct into their bank accounts while others are handing out energy vouchers.

But some are also handing out food vouchers to families in need over the coming months, including this half term.

Here are all the councils giving out help to hard up parents.

West Berkshire Council

West Berkshire Council is distributing a swathe of support to thousands of residents in need.

It is giving eligible households direct cash payments worth up to £300 as well as cash payments to pensioners.

It is also sharing £189,000 between 4,200 young children via free school meal vouchers, meaning each child on average will get £45 in vouchers.

Eligible children will receive three weeks’s worth of vouchers from their school to cover the Christmas holiday period and February half term next year.

Reading Borough Council

Nearby Reading Borough Council is handing out food vouchers to families whose children are on free school meals or pupil premium.

Around 3,900 households are expected to receive the vouchers, which will be sent from December and are worth £125.

Councillor Ellie Emberson, lead for corporate services and resources, said: “The Council has designed a local package of support which directs this invaluable funding to households in Reading who will most need it this winter, which again includes families claiming pupil premium free school meals, care leavers and pensioners.”

Devon Council

Devon Council, in the South-West of England, has been given £5million to share among hard-up households.

It is using part of the multi-million pound share to carry on giving children eligible for free school meals holiday vouchers to cover school half term breaks.

The food vouchers will be distributed by schools to 22,000 pupils to spend during this half term, Christmas and February half terms.

Hackney Council

Hackney Council is also distributing food vouchers to households in need over school half terms between now and next March.

The London authority said children eligible for free school meals in state-funded primary and secondary schools will qualify for the vouchers.

If you fall into this category but don’t receive any vouchers, Hackney Council said to contact your child’s school.

Warwickshire Council

Warwickshire Council is offering out support to families with children eligible for free school meals.

The help will come in the form of vouchers although details are limited at the minute.

The best thing to do if you live in the area and your child is on free school meals is contact their school or the council.

What about if I don’t live in these areas?

You might not be able to get school vouchers if you live outside these areas, but you may be eligible for other help.

Each council across England has been allocated a share from the £421million HSF pot.

But each local authority gets to decide its own eligibility criteria.

That means what you are entitled to will vary depending on where you live.

Not all councils have decided what they will do with their share of the £421million yet either.

The best thing to do is contact your local authority to see if any help is currently on offer.

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