Why car financing loans could erupt into the next PPI scandal – Telegraph.co.uk, The Telegraph

The driveways of suburbia seem an unlikely Ground Zero for the next debt crisis or big mis-selling scandal, but Britain’s car finance boom casts a shadow over the economy and the financial system, as well as manufacturers and dealers.

For watchdogs such as the Bank of England, which has warned over the starring role of personal contract purchases (PCPs) in a wider consumer credit binge, it is a relatively exotic challenge.

In the US, carmakers have been reliant on selling cars on finance since the mid-Eighties. For British motorists credit was not the default until after the financial crisis.

Now fears that those loans could turn span the Atlantic. The sheer scale of the debts is eye-opening ….