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Lloyds faces £66mn car-finance lawsuit from 30,000 consumers

I copied and pasted that into Google and it worked.

Nihar. Now you are just being silly.

Interesting to Google, "Is CBG a takeover target?"

It probably is, or will be when the extent of its liabilities are known.

But of course that time is only seven days away.

Just saying!

CBG have issued a statement rebutting Viceroy.

"It is just a case of whether any changes are acceptable or not."

Absolutely right.

To be legal it's going to have to take into account the Supreme Court verdict in Johnson. I don't think it will.

I don't think the Statute of Limitations Act can just be ridden over rough shod.

I don't think all the lenders will meekly fall in line.

In my view the scheme is illegal and unfair and will be challenged.

The Finance and Leasing Association have just appointed a hot shot lawyer to their management.

I don't think that appointment is unconnected with what's going to happen.

We'll see. Fortunately we don't have long to wait.

'If we proceed with a scheme." " If we do go ahead."

What kind of language is this at this late stage?

I get the impression they are preparing us for a massive u-turn. I've always had the belief that in the final analysis very little compensation will be paid.

I'm the Seventh Son of a Seventh Son and I can foretell the future. Here is a statement from FCA which will be published at the end of March.

" After a great deal of consultation and hard work on our part (which only we could have done), we have come to the conclusion that a totally fair and legal scheme for compensation for car finance mis- selling will be impossible to implement. Wishing to avoid further delay and uncertainty for the interested parties we have decided against proceeding with the scheme formulated earlier in 2025. This does not mean that people with DCA's do not necessarily have a claim. We refer them to the Supreme Court judgement in the case of Johnson. If anyone believes that you were not properly informed about the terms of conditions of an agreement and if they they have experienced real harm then they could consider proceeding with legal action. They should be warned however that the likely returns will be dwarfed by the expense and many will consider it not worth the cost in time and money. We now declare this matter closed and no further correspondence will be replied to. As a matter of Interest we have now stopped doing that thing with our hand because we have been warned that we are in danger of going blind."

Let's assume for a moment that the FCA come up with a punitive scheme which necessitates the provision of an extra £100 million, a figure lightheartedly being tossed around on here. Estimates for the EPS for 2026 very between 44p and 60p depending on where you look. With 150 million shares in issue , £100 million would wipe out even the higher figure, producing another year of apparent losses. I know that the £100 million would probably not be needed and would eventually go back into the company's accounts, but the market would see this as another yearly loss for CBG. Add to that the inevitable up to 12 months litigation say, which a punitive scheme would produce and the whole thing becomes quite depressing, with the share price likely to be marked down by what - 50p?

It had better not happen in my opinion and I doubt that it will.

Katch a cmc financer cuts it's losses on car finance. Bloomberg

The push for new money comes as Katch winds down KLIF, a separate £422 million fund that financed claims by UK consumers in a long-running car finance misselling case. Katch wrote down the value of the fund when it became clear that payouts were going to be much smaller than expected, before halting redemptions in September, letters to investors show.

Overall, lenders last year were told by the UK’s Financial Conduct Authority to pay £8.2 billion in compensation — far short of the £30 billion initially expected.

The KLIF fund has had no new investors for almost a year and is going through a voluntary self-liquidation process, a spokesperson for Katch said, adding that this doesn’t mean its underlying investments are being liquidated and the firm intends to meet any outstanding obligations.

Those choosing to invest separately in the Katch Legal Lending Fund are investing in an entirely different vehicle, the spokesperson said.

From Bloomberg:

"FirstRand Ltd. said the fate of its UK unit remains in the balance as it awaits a final ruling over the amount of compensation banks have to pay to consumers over claims they were missold car loans.

“We haven’t made the decision, because the Financial Conduct Authority ultimately has to come with a final redress,” Chief Executive Officer Mary Vilakazi said in an interview from Davos. “If a number of the substantive issues that we raised are not addressed, the amount that we are looking at is such that our business going forward is not going to have the capital resources that are needed to support lending in motors.”

A few thousand shares out of 150 million and the price goes all over the place. I have no ISA allowance, left otherwise I would be buying with both hands today.

CBG a traders dream.

Another 110 k UT buy at 3p above the ask. Hope it's someone heading for a bid.

If you have tears prepare to shed them now! CMC sharks going bust. D Telegraph.

"The London-headquartered law firm lost £95m in 2023, according to its latest accounts, following losses of £292m the previous year. Its revenue stood at just £3.6m.

Meanwhile, the company racked up debts of £633m as it borrowed heavily to fund its class action claims.

In 2023, Pogust Goodhead secured $552m (£408m) of funding from US hedge fund Gramercy Funds Management with an additional $65m top-up agreed last year.

In the accounts, bosses said they expected to secure further funding to enable the firm to continue litigating its cases, adding that forecasts showed it would be able to meet working capital requirements for at least 12 months.

However, they acknowledged there was “material uncertainty” about the company’s ability to stay afloat as future funding remained subject to agreement.

Pogust Goodhead is representing motorists in a multibillion-pound lawsuit against car manufacturers over the so-called Car Finance Scandal

In the absence of dividends I've been following the price to book ratio which is now climbing but still very far far short of the big banks which have p/b's of over 1, but they pay dividends of course I think that motor finance is about 40% of the business. With interest rates falling my estimates of the share price and earnings are probably on the low side which is based on bitter experience! My late wife always said I was a pessimist but I prefer to think of myself as a realist. Murphy's Law and all that.

The absence of dividends is niggling me a bit but I can quite see why they are not being paid in the present climate. I am conscious of the way that inflation is eating away at my capital and the money I could be getting if I was getting 4% or 5% elsewhere. Still, the anticipated capital appreciation will take care of that hopefully. The institutional investors can't be very happy about the loss of 2 to 3 years of dividends either and some of them will have bought in at a higher price. The fact that Fidelity is buying in is a nice factor, the fact that people far smarter than me think they're going to make money buying at the present price is comforting.

SG2025 - I think there's a very good chance that one way or another the £300m provision will be sufficient, or more than sufficient at the end of the day.

What we are then left with is an NTAV of over £9.00 and possible future dividends of say 30p rising. I think that would justify a price of at least £6.00 to £7.00 as a very conservative estimate, probably more.

I ask myself the question, if the so-called miss-selling hadn't taken place and the dividends had continued to be paid, would I invest in CBG? It's a hypothetical question and probably unanswerable. This is no longer the company that it was when it was £15.00 a share, it has been through the mill , reduced in size and it faces a more difficult environment under a not particularly dynamic management as far as I can see, but I think it's still is very attractive. However you cut it, £5.25 is greatly undervaluing the company.

I'm all in here and I have thought of selling half and trying something else, but looking around I can't see anything else that has got this level of potential over the next 6 to 12 months. I'm holding a shed load at £2.00 a share so I'm the last one who should grumble. Best purchase I ever made.

My dream scenario is a management buy out or a takeover at £10.00 plus, but that will probably remain a dream.

Reading the above I realise that it's a case of WTFDIK and anything could happen in the New Year. Good luck to us all anyway, there are worse shares to hold than CBG.

Knot -"This to me just proved how economically inept the whole process is and why a court process is needed."

Dead right in my opinion.

With what we know at the moment I can't see how the FCA are going to "fine tune" their scheme to make it in any way acceptable to the lenders, if so we are heading to the courts.

Then what?

March 2026 the FCA proposal. A month to consider it. Two months to prepare a case, brief some siks, apply to the High Court or piggy back straight to the Supreme Court. Wait six months for a slot (optimistic, try Googling Court waiting lists).

We shouldn't expect a quick result IMO. Meanwhile the market will joyfully dick around with the share price between £4.50 and £5.50 for months and months.

I do hope I am wrong.

Have you noticed the CBG BOD is composed of six women and three men which is very unusual. Before some pratt accuses me of being a misogynist, I'm not, I couldn't care less if they can do their job. With Fidelity being the largest shareholder at 15% I wouldn't be surprised if they push to get a seat on the board. I think they deserve it.

Like Nihar I'm not over the moon about the management I would like much more information from the company. I also wonder about the wisdom of appointing a CFO as a CEO, the qualities needed for both jobs are very different. I may be doing him injustice but Mike Morgan seems to be keen on cutting costs and retrenching, which is typical accountants behaviour. Let's hope he is capable of real leadership and has some vision. We'll see.

"That famous line, "I disapprove of what you say, but I will defend to the death your right to say it," isn't actually Voltaire's, but was written by Evelyn Beatrice Hall in 'The Friends of Voltaire' (1906) as a summary of his beliefs, capturing the core principle of free speech, even for unpopular ideas."

Not a lot of people know that!

Loan interest, not loan. Why can't we edit posts after posting?

Were CBG paying DCA's? In all cases? Did the loan agreements state in writing that a variable commission could be paid to the dealer? Could the commissions exceed 35% of the loan?

If we were ever given answers to those questions , I missed it. Anyone know?