UK Watchdog Says Prior Motor Finance Ruling ‘Goes Too Far’

The UK’s financial watchdog sought to rein in the spiraling motor finance saga, saying at the start of a closely-watched Supreme Court hearing that a previous ruling on compensation “goes too far.”

At the outset of a three-day hearing, the Financial Conduct Authority said a “sweeping” appeal court decision last year on the duties of motor dealers went further than expected. The FCA is waiting for a final ruling from the country’s top judges before imposing a compensation program for borrowers that some analysts estimate could cost banks as much as £38 billion ($49.1 billion).