The financial services arm of Mercedes-Benz is launching a legal challenge to a £9bn scheme set up to compensate motorists who were mis-sold motor finance products.
MEZIESBLOG understands that the German car group, along with rival Volkswagen, decided over the weekend to challenge the Financial Conduct Authority’s (FCA) redress programme ahead of a deadline on Monday.
In a statement issued to Sky News, Mercedes-Benz, which has already set aside more than £400m for compensation payouts, confirmed it had challenged the scheme.
“Mercedes‑Benz Group can confirm that it has appealed against the FCA’s proposed Redress Scheme,” it said.
“Given that this is subject to ongoing legal proceedings, we cannot comment further.”
Executives at Volkswagen Financial Services, which analysts expect could face a bill of approximately £1.5bn, are also said to have decided to challenge the scheme.
This morning, however, VWFS had not responded to several requests for comment, and there was no independent confirmation that it had taken the legal steps required to proceed with a challenge.
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