Compensation

Watchdog says legal challenges from Consumer Voice and three lenders ‘create fresh uncertainty for millions of consumers’Business live – latest updatesThe UK financial watchdog is facing four legal challenges against its £9.1bn compensation scheme for victims of the motor finance scandal.The Financial Conduct Authority (FCA) said that it will defend the scheme “robustly” as the “fastest, simplest route for consumers and the most efficient way for firms to put things right”. Continue reading...

Additional £1bn allocated to payments for victims and their relatives, including extra £35,000 for former Treloar pupilsCompensation payments will rise for people affected by the infected blood scandal, including an extra £35,000 each for pupils who were experimented on at school without their knowledge, the paymaster general has announced. The government has allocated £1bn for the payments.The final report of the inquiry into what has been described as the biggest treatment disaster in NHS history was published in May 2024. The compensation scheme that followed has also been blighted by controversy. Continue reading...

Specialist lender says it expects its slice of £9.1bn compensation set by FCA to be about £320mClose Brothers shares surged on Wednesday after the UK bank declared it could “comfortably absorb” its slice of a £9.1bn compensation bill over the motor finance scandal, hours after one of its rivals announced it was selling its UK operations over looming costs.The specialist lender said it expected the final terms of the Financial Conduct Authority’s (FCA) compensation scheme to cost roughly £320m, a sum that is “broadly similar” to previous estimates and the £294m put aside to date. Continue reading...

Figures suggest if £500,000 limit set for Great Britain 30 years ago was adjusted for inflation the maximum would be more than £1mA 30-year freeze on compensation for victims of crime should be lifted, campaigners have said, adding that the maximum of £500,000 is insufficient to plan for a lifetime.The current highest rate, set in April 1996 by the Criminal Injuries Compensation Authority (CICA), is paid to victims of crime in England, Scotland and Wales who have suffered severe life-changing injuries, including brain damage and paralysis. Continue reading...

Scheme for accusers of store’s former owner Mohamed Al Fayed to close before end of retailer’s internal investigationHarrods has been accused of being “neither fair nor just” over its decision to close a compensation scheme for survivors of alleged sexual abuse by the luxury department store’s former owner Mohamed Al Fayed.Kingsley Hayes, partner at KP Law, which is representing nearly 280 survivors, questioned why the scheme was being closed on Tuesday 31 March, before Harrods had completed an internal investigation into what happened and who knew about it. Continue reading...

Redress programme for 14m motor finance agreements will be set out by regulator on Monday afternoonBusiness live – latest updatesMillions of drivers will discover how much can they claim over the car finance scandal on Monday, as the City regulator sets out the final terms of its compensation scheme.The Financial Conduct Authority (FCA) will release the details of its redress programme for 14m motor finance agreements after 4:30pm, ensuring that the information comes out after stock markets close for trading. Continue reading...

Close relatives of affected post office operators will be able to make claim over harm scandal caused families Family members of post office operators affected by the Horizon IT scandal will be able to claim compensation under a new government scheme.Campaigners have lobbied for compensation in relation to the harm the scandal has caused to the mental health and wellbeing of close relatives who have not been eligible under the redress schemes being run by the Post Office and the government. Continue reading...

Woman known only as Beth says abuser claimed status made him untouchable, which terrorised her into silenceMI5 has apologised and paid compensation to a woman who alleged the Security Service was to blame for her being attacked with a machete and abused by one of its agents.The woman, known only as Beth, was in a relationship with a man she says used his status as an MI5 agent to perpetrate abuse and terrorise her into silence. Continue reading...

Refund systems for individual train operators to be merged into single service under nationalised rail bodyRail passengers will be able to claim compensation for delayed trains directly from the website where they bought their ticket, the government has said, as part of a shake-up to make rail travel simpler.Passengers who use third-party retailers such as Trainline to buy tickets currently, have to submit applications for refunds to the relevant train operator for processing. Continue reading...

Austrian officials took action after airline ignored court order to pay €890 to unnamed womenBailiffs have boarded a Ryanair aircraft after the airline refused to pay compensation to a passenger whose flight was delayed.Austrian officials took action after the budget carrier ignored a court order to pay the unnamed woman €890 (£742) in legal costs and compensation for a delayed flight two years ago. Continue reading...