Banks Making Huge Profits
Reported in The Times today bumper profits for the UK’s four biggest high street banks are set to reach an estimated £47 billion, propelled by higher interest rates. HSBC is expected to report a near-doubling of pre-tax profits to about £27 billion, a record for the bank.
Lloyds Banking Group and NatWest are also expected to see increases in profit, with Lloyds at £7.4 billion and NatWest at almost £6 billion.
Barclays, despite facing restructuring costs, is forecast to have generated pre-tax profits of £6.7 billion.
The banks have benefited from rising interest rates, allowing them to expand their margins, but they also face challenges such as slowing growth and regulatory reviews. There have been calls for a windfall tax on bank profits, with estimates that it could raise significant revenue. The issue of bank profits and the potential for a windfall tax has been the subject of political and public debate, with some advocating for such a tax as a means of addressing economic concerns and redistributing wealth.
Affording Mis-sold Car Loan Finance Payouts
Nobody would want to see banks being liquidated but they have to pay for their actions. With these bumper profits it will hold them in good financial position to replay mis-sold car loans.
The potential misconduct related to car finance loans has raised estimates of a substantial compensation bill for banks, particularly Lloyds Banking Group[1]. The issue of mis-sold car financial mis-selling in the UK centers around discretionary commission arrangements by lenders, and the Financial Conduct Authority (FCA) [2] has launched a comprehensive investigation into historical car finance loans, expressing serious concerns over potential widespread mis-selling of unfair deals[3]
These arrangements, combined with a discernible surge in complaints and data from the Financial Ombudsman Service (FOS) indicating a substantial issue, have propelled the FCA into launching a meticulous 37-week investigation[4].
The FCA has introduced temporary complaint-handling rules relating to certain car finance complaints, aiming to address the potential mis-selling of car loans[4].
R James Hutcheon Solicitors are committed to continuing to investigate cases related to mis-sold car loans and offers a free, independent service for individuals concerned about their car loans and unhappy with how firms have responded[4]. The potential impact of the mis-sold car loan scandal, especially in relation to the discretionary commission model and its ban, has raised significant worries within the banking and regulatory sectors[2][4].
Citations:
[1] https://www.thetimes.co.uk/article/big-banks-set-for-47bn-profits-thanks-to-high-interest-rates-ct6jmkhwf
[2] https://theconversation.com/why-you-should-care-about-bumper-bank-profits-201440
[3] https://www.thisismoney.co.uk/money/markets/article-12656399/Bumper-profits-lenders-line-fire.html
[4] https://www.cityam.com/banks-in-line-for-another-round-of-bumper-profit-amid-savings-rate-row/
[5] https://www.cnbc.com/2024/01/24/german-regulator-urges-banks-to-set-aside-bumper-profits-for-bad-news.html
Hutcheon Law, The Sunday Times – Mis-sold Car Finance
The mis-selling of car loans due to undisclosed commissions earned by dealers when arranging finance has garnered significant attention. R James Hutcheon Solicitors, a prominent law firm specialising in financial mis-selling claims, was recently featured in The Sunday Times regarding a client, Alistair Chong, who was charged an 11.4% interest rate on a £25,000 Audi A5, significantly higher than prevailing rates.
This case underscores the lack of transparency in these car finance arrangements and the need for greater industry openness. The potential impact of the mis-sold car loan scandal has prompted the Financial Conduct Authority (FCA) to conduct a comprehensive investigation into historical car finance loans, expressing serious concerns over potential widespread mis-selling of unfair deals1, 2
The issue revolves around discretionary commission arrangements that allowed dealers to earn more by charging borrowers higher interest rates. The FCA’s investigation has led to the introduction of temporary complaint-handling rules for certain car finance complaints, aiming to address potential mis-selling of car loans 4
The Financial Ombudsman Service (FOS) has banned “discretionary commission” incentives after finding that individual buyers were overcharged, leading to more than 10,000 complaints 2
R James Hutcheon Solicitors are fully committed to investigating cases related to mis-sold car loans and offers a no win no fee, independent service for individuals concerned about their car loans and unhappy with how banks and car dealers have responded 4
The ongoing scrutiny and regulatory actions underscore the significance of the mis-sold car loan scandal and its potential implications for consumers and the financial industry as a whole 5
A Pioneering Law Firm Helping Consumers
At R James’s Hutcheon Solicitors we are a forerunner in helping consumers reclaim mis-sold financial products for over 17 years. We are one of the first solicitors to take court action for mis-sold PPI claims helping reclaim £Millions for consumers.
The action now is to fight for mis-sold car loan finance that includes PCP car finance and interest rate fixing by car dealers that include secret commissions. Each case will be decided on its won particular facts but we are here to help you re-claim £thousands. Contact us today to re-claim missold car finance loans.
