The Financial Conduct Authority has been criticised by a government committee over a "deep lack of clarity" in its £11billion car finance mis-selling compensation scheme.

During what The Times describes as an "intense interrogation" by House of Lords financial services regulation committee on Wednesday, senior FCA executives came under fire.

Boss Nikhil Rathi was criticised over the way the regulator has constructed its scheme and for the time it has taken to tackle problems in the car loans market.

Lord Grabiner spoke about concerns over the timescale included in the plans, with consumers affected able to make claims in relation to car loans agreed up to 18years ago.

Committee chair Lord Forsyth asked Rathi if the FCA had been “asleep at the switch”.

Under its proposed compensation scheme, details of which emerged last week, the authority is looking to compel lenders to join the scheme which woul

Under proposals detailed last week, the authority is seeking to force lenders into a compensation scheme that the authority estimates may result in compensation totalling £8.2billion being paid to millions of motorists.

Lenders including Lloyds Banking Group and Close Brothers, as well as the motor finance arms of the carmakers, will also be required to comply with the compensation programme, costing them an additional estimated £2.8billion.

It's estimated that 44% of all car loans between April 2007 and November 2024 will meet the criteria for a claim.

Read the full story in The Times.

FTSE100

The UK's flagship share index, the FTSE 100, was down 51 points at 9,404 shortly after opening this morning.

Brent crude oil futures were up 0.03% at $62.38 a barrel.

Companies reporting today

  • Atalaya Mining Copper - Q3 Operational Update
  • Croda* - Q3 Corporate Sales Release
  • Mondi - Q3 Trading Update
  • Taiwan Semiconductor Manufacturing Co* - Q3 Results
  • Whitbread* - Half Year Results

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