LONDON, April 27 (Reuters) - A British consumer group on Monday said it had filed a legal challenge to a 9.1 billion-pound ($12.32 billion) redress scheme to compensate motorists for mis-sold motor finance, a move Britain’s market regulator described as disappointing.
Last month, the Financial Conduct Authority unveiled a trimmed-down, final bill amid a pushback from lenders, which came after the United Kingdom’s top court overturned a landmark ruling that had sent shockwaves through the industry.
Lenders including Close Brothers (CBRO.L) and Santander (SAN.MC) have decided not to challenge the FCA’s redress scheme, which the FCA said would allow consumers to receive compensation quickly.
But Consumer Voice, which said it has applied to London’s Upper Tribunal to challenge the redress scheme, argues it “fails to deliver fair, adequate or lawful consumer redress and systematically undercompensates consumers”.
The group said in a statement that it believes “consumer redress has been minimised in order to protect lenders”.
The FCA said the move could delay consumers receiving compensation and “also prolongs the uncertainty for all involved, which is not good for investment or a healthy motor finance market”.
“We are considering our approach and will set out more later this week,” the FCA said. ($1 = 0.7387 pounds)

UK's car finance redress scheme faces legal challenge from consumer group