City watchdog faces legal action over £9.1bn compensation scheme for car loan victims

Exclusive: Lawyers for group Consumer Voice notified FCA they are challenging redress scheme as inadequate

A consumer group is preparing to take the City watchdog to court in the hope of overhauling a £9.1bn compensation scheme that it claims massively shortchanges victims of the UK car loan scandal.

Lawyers working for Consumer Voice have written to the Financial Conduct Authority (FCA), notifying them that they intend to challenge the redress programme in order to protect drivers’ interests, according to sources familiar with the group’s plans.