FCA accused of hypocrisy over delays

In a recent turn of events, solicitor Kevin Durkin has vocally accused the Financial Conduct Authority (FCA) of hypocrisy concerning their warnings about delays in the motor finance compensation process. Durkin, who successfully litigated a landmark case that resulted in a £9.1 billion compensation package for UK drivers, took particular issue with the FCA's defence of its position. In response to a legal challenge launched by Consumer Voice, the FCA stated, “It seems contradictory that organisations claiming to represent consumers would seek to delay payouts for millions of people.”

However, Durkin, the Head of Legal Practice at HD Law and the only lawyer in the UK to have successfully taken a car finance case to the Supreme Court, contested the FCA's claims. He pointed out the FCA’s long-standing investigation into the motor finance sector prior to establishing a clear policy last month. He stated, “It sits ill in the mouth of the FCA to reference delay when it has been investigating this area for almost ten years before setting down a clear policy only last month. This in itself was accelerated by HD Law succeeding on behalf of Mr Johnson in the Supreme Court last August.”

Durkin has long maintained that the FCA has been “lowballing” compensation amounts to safeguard bank liquidity rather than prioritising consumer needs. He expressed his support for the ongoing challenge against the FCA’s compensation scheme, saying, “I welcome this challenge to the Financial Conduct Authority’s flawed motor finance compensation scheme. The concerns being raised reflect obvious issues with the scheme, which, in its current form, leaves many consumers undercompensated.” He also highlighted that the scheme fails to consider the general public’s interests effectively.

Durkin elaborated on the potential implications of taking legal action, noting, “While a judicial review may result in a short-term delay, we hope it can deliver a fairer, more equitable outcome for consumers overall. Let’s hope that any potential delay results in more money in the public’s pockets. Short-term pain for long-term gain.” He further emphasised that if the challenge is successful, it could ensure that consumers receive the compensation they rightfully deserve and help restore trust in the process, adding, “Let’s just hope that this is expedited swiftly.”

The situation remains fluid, with Consumer Voice preparing a legal challenge against the FCA and urging for improved compensation levels amid concerns that the current scheme disproportionately favours lenders while undercompensating millions of drivers. As both sides brace for a possible judicial review, the outcomes could have significant consequences for consumer rights and compensation practices in the motor finance industry.