CAR FINANCE INVESTIGATION — WHAT YOU NEED TO KNOW
OVERVIEW: WHY CAR FINANCE IS UNDER REVIEW
The UK car finance market is currently subject to significant regulatory attention. The Financial Conduct Authority (FCA) has been examining the historic use of discretionary commissions — arrangements where brokers could influence interest rates on finance agreements. This review began with rule changes in 2021, and the FCA is now looking at the wider impact on customers.
Lloyds Banking Group: £1.2 BILLION PROVISION ANNOUNCED
FCA estimate is £9bn to £18bn. Santander UK has announced it has set aside £295 million to address potential costs arising from the ongoing review. Other major lenders, including Lloyds and NatWest, have also made provisions. The total amount set aside across the industry so far is approaching £1 billion, and some analysts have suggested this could increase depending on the outcome of the review.
Figures quoted are based on public announcements and may change as the FCA investigation progresses.
WHAT’S NEXT? KNOW YOUR RIGHTS
The FCA’s investigation is ongoing, and some cases are being considered by the courts and the Financial Ombudsman Service. If you have taken out car finance in recent years, it may be worth reviewing your agreement to see if a discretionary commission arrangement was involved. If so, you may have grounds to raise a complaint.
For further details, see the original report here:
Santander Sets Aside £295M for Car Finance Review
HASHTAGS
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