Mercedes‑Benz’s UK finance arm has joined two other lenders in appealing the Financial Conduct Authority’s redress scheme, which aims to pay billions to borrowers accused of loan mis‑selling. The FCA’s scaled‑back proposal estimates a cost of £9.1bn across 12.1 million car loans, averaging £829 per claim. Mercedes said it filed the appeal after a Sky News report, but declined further comment to address potential legal exposure.

Mercedes has earmarked roughly £400mn in provisions to meet any potential liability, a figure sourced from an insider. Volkswagen Financial Services and Crédit Agricole are the other challengers, though neither has responded to queries. Consumer advocacy group Consumer Voice also sued the regulator, alleging the scheme unfairly limits claimants’ rights and could influence future regulatory approaches.

The Upper Tribunal will now decide which challenges are admissible, a process significantly likely to push back compensation payouts by several months for millions of UK consumers. While BMW opted not to contest the plan, citing speed and ease for its customers, major banks such as Lloyds, Santander and Barclays have also stayed out, signaling industry fatigue after years of litigation.