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Lloyds Banking Group is embroiled in a significant court battle with approximately 30,000 car loan customers who are seeking £66m in compensation. The claims, being handled by the law firm Courmacs Legal, stem from allegations that Lloyds' motor finance arm, Black Horse, engaged in unfair commission arrangements with car dealers, leading to customers being overcharged for their loans. This case is part of a broader car loans commission scandal that has affected numerous consumers. The Financial Conduct Authority (FCA) had proposed a redress scheme worth an estimated £11bn to compensate affected customers. However, the claimants have opted to pursue a court case instead, citing concerns that the FCA's scheme may not provide adequate compensation. Under the FCA's proposed scheme, consumers were expected to receive an average payout of £700 per claim, which is less than half of the £1,500 average payout recommended by some consumer groups. This discrepancy has led claims law firms to argue that the scheme favors lenders over consumers. The court case, expected to be filed in the coming weeks, marks a significant development in the ongoing car finance mis-selling scandal. Courmacs Legal will represent the 30,000 claimants, taking a 28% cut of any successful payout. The firm believes that pursuing a court case is necessary to ensure that their clients receive fair compensation. A spokesperson for the FCA emphasized that their redress scheme is designed to provide consumers with fair compensation quickly and without incurring high fees. Meanwhile, Lloyds Bank has declined to comment on the matter. This case is likely to be the first in a series of omnibus suits against other lenders involved in the motor finance mis-selling scandal. A court of appeal case brought by Lloyds and other banks is currently pending, which could potentially impact the progression of Courmacs's omnibus claims.

The Financial Conduct Authority (FCA) has accused Crispin Odey, a former hedge fund manager, of attempting to manipulate a victim of sexual assault into silence. According to evidence presented in court, Odey sent a text to his former employee in January 2022, warning her that the FCA could question her about him.Odey, who has previously accepted that he groped the woman without her consent in 2005, claimed he was under the influence of sedatives at the time. He now faces a number of sexual harassment allegations and has launched a £79m libel lawsuit against the Financial Times.The FCA's lawyer, Clare Sibson, argued that Odey was trying to manipulate the victim into silence and had a clear motive to discourage her from providing her account to the FCA. Odey, however, claimed he only wanted to ensure the woman would "tell the truth".The hearing continues, with Odey hoping to overturn the FCA's decision to ban him from the UK's financial services industry. In addition to the libel lawsuit, Odey is also facing civil personal injury claims by five women, including one who accused him of rape.

Crispin Odey, a 67-year-old hedge fund tycoon, appeared in a London courtroom on the first day of a three-week trial to challenge the Financial Conduct Authority's (FCA) decision to ban him from the UK's financial services industry. The ban was imposed due to allegations of sexual harassment made by several women. Odey testified that he did not recall cornering a female employee after a boozy lunch and saying to her 'I could attack you now'. However, the employee's diary entry, dated January 24, 2020, confirmed the incident, stating: 'Comes back from boozy lunch and corners me in the corridor. Him: I could attack you now. Me: Please don’t. Him: You could sue me for that.' Odey admitted to having groped a colleague's breasts without her consent in 2005, which he attributed to being under sedatives after root canal treatment. He claimed the woman accepted his apology and continued to work for the firm for another eight years. The FCA alleges that Odey showed a 'lack of integrity' by attempting to frustrate an investigation into allegations of sexual harassment. Odey denied these allegations, stating that he had attempted to have the FCA rule on whether he was fit and proper first. Odey is also facing a £79m libel lawsuit against the Financial Times and civil personal injury claims by five women, including one who accused him of rape. The hearing continues.

UK MPs have called on the government to halt a contract with Palantir, a US-based spy-tech company, after it was revealed that the firm will gain access to a vast trove of highly sensitive UK financial regulation data. The Financial Conduct Authority (FCA), the watchdog overseeing thousands of financial bodies, has hired Palantir to apply its AI systems to two years' worth of internal intelligence data to help tackle financial crime. However, the Liberal Democrats and Green party have raised concerns over Palantir's ties to Donald Trump and the potential risks to national and economic security. The Liberal Democrats have called for a government investigation into the contract, citing concerns that it could be "a huge error of judgment". Palantir, founded by Peter Thiel, a billionaire supporter of Trump, has built up over £500m in contracts in the UK, including with the NHS, police, and Ministry of Defence. The company supports the US and Israeli militaries and the ICE immigration crackdown. Insiders at the FCA have questioned whether there are sufficient safeguards in place to prevent the data from being exploited. There are concerns about the potential for data about sensitive FCA investigations into high-profile figures to be accessed during Palantir's work. The FCA has insisted that Palantir will be a "data processor", not a "data controller", meaning it can only act on instruction from the regulator. The FCA will retain exclusive control over the encryption keys for the most sensitive files, and the data will be hosted and stored solely in the UK. Despite these assurances, MPs have expressed concerns over the risks associated with the contract. Daisy Cooper, the Liberal Democrats' Treasury spokesperson, called for an investigation into the FCA's Palantir contract, citing concerns over Palantir's ties to Trump. The Green party MP Siân Berry has called for the government to "step in immediately and protect our national and economic security by blocking this contract award". Palantir has denied claims that it may "use customer data for our own purposes", stating that this is "something that we have no business interest in, and that we are legally and contractually prevented from doing".

Palantir, a Miami-based company backed by billionaire Peter Thiel, has secured a three-month trial contract with the Financial Conduct Authority (FCA) to analyze a vast amount of sensitive UK financial regulation data. The deal, worth over £30,000 per week, aims to help the FCA tackle financial crimes such as fraud, money laundering, and insider trading.The FCA has awarded Palantir the contract to investigate its internal intelligence data, which includes highly sensitive case intelligence files, information on problem firms, and reports from lenders about proven and suspected frauds. Palantir will apply its AI system, known as Foundry, to huge quantities of information held by the watchdog, including recordings of phone calls, emails, and social media posts.The contract has raised concerns about privacy and the company's ethical reliability. One source expressed concerns that Palantir may share the information it learns from the FCA with other parties. Palantir's technology is used by the Israeli military and in the US president's ICE immigration crackdown, leading to criticism from left-wing MPs.The FCA has stated that it has strict controls in place to ensure data is protected and that Palantir will only act on instruction from the regulator. The data will be hosted and stored solely in the UK, and Palantir will have to destroy the data after completion of the contract.Experts have highlighted the potential benefits of using AI to tackle financial crimes, but also emphasized the need for robust protocols to protect sensitive information. Prof Michael Levi, an expert in money laundering, noted that AI is a potentially valuable technology to tackle financial crimes, but also raised concerns about the ownership and control of the data.

Palantir, a leading AI and data analytics company, has secured a major contract with the UK's Financial Conduct Authority (FCA) to leverage its AI technology for detecting financial wrongdoing. This deal marks a significant expansion of Palantir's presence in the UK, where it has already embedded its technology in the NHS, police, and military. The contract, valued at over £500m, enables Palantir to access terabytes of data gathered by the FCA, providing it with an unparalleled view of the inner workings of British authorities and the City of London, a global financial hub. Campaign groups have expressed concerns over Palantir's work with public authorities, citing its previous involvement with controversial entities such as the US Department of Homeland Security and the Israel Defense Forces. However, the company continues to secure lucrative contracts in the UK. The FCA aims to utilize Palantir's AI technology to better detect signs of wrongdoing, such as money laundering and fraud, which account for approximately 40% of all crimes in the UK. The regulator's workplan for 2025-26 includes expanding the use of data and intelligence to identify and act on high-risk firms and individuals. However, experts warn that the use of AI in detecting financial wrongdoing may lead to new challenges, such as criminals adapting to evade detection by using techniques like invisible 'white text' in documents to instruct AI systems to ignore incriminating information. Prof Michael Levi, an expert in money laundering at Cardiff University, notes that while there are concerns about data privacy, the use of AI technology can also help target corporate holdings and shell companies used for illicit activities.