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Santander UK sets aside £295m for car finance scandal

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Post: Santander UK sets aside £295m for car finance scandal

Overview

The UK car finance industry is under increasing scrutiny following allegations of mis-sold loans. The Financial Conduct Authority (FCA) has launched a wide-reaching review into discretionary commission practices, which were banned in 2021 due to consumer harm concerns.

Santander Provision

Santander UK has become the latest bank to respond to the brewing scandal, setting aside £295 million in anticipation of potential compensation. The move follows a landmark Court of Appeal ruling and mirrors similar provisions made by Lloyds Banking Group earlier this year.

So far, nearly £1 billion has been earmarked by major lenders, and some experts predict the final redress bill could reach a staggering £30 billion — rivalling the infamous PPI scandal.

What’s Next?

With an influx of county court claims and a sharp increase in complaints, the FCA’s ongoing investigation could lead to widespread repayments. Santander has warned that the true financial impact could be “materially higher or lower” than its current provision.

If you’ve taken out car finance in recent years, it may be worth reviewing your agreement to see if you were affected by discretionary commission arrangements.

See more at Santander UK sets aside £295m for car finance scandal

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#SantanderUK #CarLoanScandal #MisSoldLoans #MotorFinance #FCAInvestigation #DiscretionaryCommission #PPI2 #UKBankingNews #ConsumerRights #FinancialScandal #CarFinanceClaims

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