UK Motor Finance Industry Faces Potential Compensation Scandal
The UK's motor finance sector is confronting a significant potential compensation bill due to a surge in complaints about commission practices. Over 60,000 complaints regarding car finance commissions are awaiting resolution, highlighting a potential scandal comparable to the Payment Protection Insurance (PPI) debacle. The Financial Conduct Authority (FCA) is investigating allegations that motorists may have been overcharged due to discretionary commission arrangements, which allowed dealerships and brokers to set their own interest rates on loans, resulting in higher commissions. Customers who financed vehicle purchases before January 28, 2021, when these arrangements were banned, may be eligible for compensation. The investigation has been extended through December 2025, and several major lenders have already set aside substantial funds in anticipation of the financial fallout. Consumers can file complaints and seek redress if they believe they were overcharged because of these commission practices.
THESCOTTISHSUN.CO.UK
CAB Payments' Chief Financial Officer Resigns
CAB Payments' Chief Financial Officer, Richard Hallett, has resigned abruptly after nine years with the company. This follows a series of challenges for CAB, including disappointing financial updates and job cuts. The company, which went public in July 2023, has faced significant difficulties, including a 72% share value drop post-IPO and a profit warning later that year. CEO Bhairav Trivedi also departed recently. New CEO Neeraj Kapur is attempting to turn the company around amidst various obstacles, including a stronger dollar and declining revenue. Matthew Talty will serve as the interim finance chief following Hallett’s departure.
THETIMES.CO.UK
Apollo Global Management Sets Ambitious Private Lending Goal
Apollo Global Management has set an ambitious goal to manage $1.2 trillion in private loans by 2029, more than doubling its current $562 billion. The firm aims to reach $1 trillion in total assets under management, including private loans, by 2026. Apollo's growth is driven by a surge in demand for private credit amid a banking crisis and its merger with retirement services provider Athene, which has provided substantial capital for loans. The firm plans to fuel its growth through private credit and equity, with expectations of significant investments in energy transition, power utilities, and digital infrastructure over the next decade. Apollo's strategy leverages long-term, stable capital from life insurance and retirement funds, positioning itself to fill gaps left by traditional banks and tap into underexplored markets.
BUSINESSINSIDER.COM
US Banks Navigate Political Pressures on Climate Commitments
From late 2024, major US banks such as Citigroup, Bank of America, and Morgan Stanley quit the Net-Zero Banking Alliance (NZBA) due to political pressures and targeted strategies. They faced a dilemma between compliance with stringent EU climate disclosures and criticism from US politicians opposing environmental, social, and governance (ESG) frameworks. Exiting NZBA allows banks to avoid scrutiny while continuing to offer green financial services and maintaining their climate commitments. Legal actions and political backlash under president-elect Trump further influenced these decisions, prompting the finance sector to balance pressure from progressive asset owners and conservative political attacks. However, US banks still focus on green financial products to support the energy transition amidst rising climate risks.
FT.COM
Ronan Group Secures Financing to Acquire Bewley's Café Building
Ronan Group Real Estate (), led by developer Johnny Ronan, has secured financing from alternative lender to purchase the Café building on Grafton Street, along with three other properties, from bank-appointed receivers. The deal is expected to close early next year. Previously, invited Bank of Ireland and AIB to appoint receivers over 16 of its properties to facilitate a managed process of introducing new investors and lending arrangements. Key properties included in this deal are the Bewley’s building, a property at 70 Grafton Street, St James House on Adelaide Road, and Percy Exchange on Percy Place. traditionally a lender to the SME and personal markets, will now expand its portfolio with this commercial property loan.
THETIMES.CO.UK
Top Finance News Today
thescottishsun.co.uk
Major update for 60,000 drivers on mammoth car finance compensation bill
Today
thetimes.co.uk
CAB Payments finance chief steps down
Yesterday
businessinsider.com
Apollo just set a goal to manage $1.2 trillion in private loans by 2029. These 7 slides show how it will get t
here.
133 days ago
Sources
Here are some of today's notable finance and business news:
UK Motor Finance Industry Faces Potential Compensation Scandal
The UK's motor finance sector is confronting a significant potential compensation bill due to a surge in complaints about commission practices. Over 60,000 complaints regarding car finance commissions are awaiting resolution, highlighting a potential scandal comparable to the Payment Protection Insurance (PPI) debacle. The Financial Conduct Authority (FCA) is investigating allegations that motorists may have been overcharged due to discretionary commission arrangements, which allowed dealerships and brokers to set their own interest rates on loans, resulting in higher commissions. Customers who financed vehicle purchases before January 28, 2021, when these arrangements were banned, may be eligible for compensation. The investigation has been extended through December 2025, and several major lenders have already set aside substantial funds in anticipation of the financial fallout. Consumers can file complaints and seek redress if they believe they were overcharged because of these commission practices.
CAB Payments' Chief Financial Officer Resigns
CAB Payments' Chief Financial Officer, Richard Hallett, has resigned abruptly after nine years with the company. This follows a series of challenges for CAB, including disappointing financial updates and job cuts. The company, which went public in July 2023, has faced significant difficulties, including a 72% share value drop post-IPO and a profit warning later that year. CEO Bhairav Trivedi also departed recently. New CEO Neeraj Kapur is attempting to turn the company around amidst various obstacles, including a stronger dollar and declining revenue. Matthew Talty will serve as the interim finance chief following Hallett’s departure.
Apollo Global Management Sets Ambitious Private Lending Goal
Apollo Global Management has set an ambitious goal to manage $1.2 trillion in private loans by 2029, more than doubling its current $562 billion. The firm aims to reach $1 trillion in total assets under management, including private loans, by 2026. Apollo's growth is driven by a surge in demand for private credit amid a banking crisis and its merger with retirement services provider Athene, which has provided substantial capital for loans. The firm plans to fuel its growth through private credit and equity, with expectations of significant investments in energy transition, power utilities, and digital infrastructure over the next decade. Apollo's strategy leverages long-term, stable capital from life insurance and retirement funds, positioning itself to fill gaps left by traditional banks and tap into underexplored markets.
US Banks Navigate Political Pressures on Climate Commitments
From late 2024, major US banks such as Citigroup, Bank of America, and Morgan Stanley quit the Net-Zero Banking Alliance (NZBA) due to political pressures and targeted strategies. They faced a dilemma between compliance with stringent EU climate disclosures and criticism from US politicians opposing environmental, social, and governance (ESG) frameworks. Exiting NZBA allows banks to avoid scrutiny while continuing to offer green financial services and maintaining their climate commitments. Legal actions and political backlash under president-elect Trump further influenced these decisions, prompting the finance sector to balance pressure from progressive asset owners and conservative political attacks. However, US banks still focus on green financial products to support the energy transition amidst rising climate risks.
Ronan Group Secures Financing to Acquir Café Building
Ronan Group Real Estate), led by developer Johnny Ronan, has secured financing from alternative lender to purchase the Café building on Grafton Street, along with three other properties, from bank-appointed receivers. The deal is expected to close early next year. Previously, invited Bank of Ireland and AIB to appoint receivers over 16 of its properties to facilitate a managed process of introducing new investors and lending arrangements. Key properties included in this deal are the Bewley’s building, a property at 70 Grafton Street, St James House on Adelaide Road, and Percy Exchange on Percy Place. Capitalflow, traditionally a lender to the SME and personal markets, will now expand its portfolio with this commercial property loan.
