S&U says Budget and motor finance scandal weighing on performance December 11, 2024 S&U said the Budget and a scandal over motor finance commissions have dragged on the specialist lender’s financial performance. Anthony Coombs, a former Conservative MP who has been S&U’s chair for the last 16 years, argued Labour’s first Budget had “curtailed the sector’s growth ambitions and cast doubt over the new government’s plans to ‘Get [...]
Lloyds boss says motor finance scandal poses threat to UK economy December 4, 2024 The chief executive of Lloyds Banking Group has warned that controversy over now-banned motor finance deals poses a threat to the UK economy. Speaking at the Financial Times’ Global Banking Summit on Wednesday, Charlie Nunn said a shock court ruling in October over ‘secret’ car loan commissions “creates an investability problem” for Britain’s wider consumer [...]
FCA proposes extending motor finance complaint deadline November 21, 2024 The Financial Conduct Authority (FCA) is weighing up whether to extend the time that companies have to respond to motor finance complaints following a landmark high court ruling. In an announcement today, the watchdog said it is launching a consultation on whether to give firms more time to respond to customers’ concerns over the use [...]
Close Brothers restarts motor finance lending following landmark ruling November 21, 2024 Close Brothers has restarted its motor finance lending practice a month after a landmark court ruling over the legality of its business. On 25 October, a court ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment, sending the entire motor finance [...]
Santander UK sets aside £295m for motor finance payout November 20, 2024 Santander UK has set aside £295m in its quarterly results to pay out to motor finance customers following a landmark court ruling on the topic last month. The bank had previously delayed its third-quarter results thanks to the high court ruling, which it said had left it unable to calculate the potential cost of the [...]
UK banks could limit buybacks as car loan scandal grows November 13, 2024 Some UK banks could be forced to reduce upcoming investor payouts, analysts have warned, as the Financial Conduct Authority mulls whether to expand a probe into now-banned car loan deals.
FCA could spend £20m on car loan probe after shock court ruling November 7, 2024 The Financial Conduct Authority (FCA) could splash £20m on the first stage of its review into car loan commissions, City AM can reveal, reflecting the scale of a scandal that may see lenders forced to pay billions of pounds in compensation.
Close Brothers warned of £640m hit if car loan scandal spreads November 5, 2024 Close Brothers could take a hit to its profits worth almost double its stock market value if a brewing car loan scandal spreads to other areas of consumer finance, analysts have warned.
Secure Trust Bank slashes profit expectations amid motor finance ruling November 1, 2024 Secure Trust Bank has slashed profit expectations for this year due to the performance of its motor finance business. In a trading update today, the London-listed lender said that following the Financial Conduct Authority’s motor finance decision, it restored vehicle finance loan collections activity to normal levels. Meanwhile, early arrears in vehicle finance are at [...]
Motor finance industry in crisis mode after landmark court ruling November 1, 2024 Motor finance providers are scrambling to avoid a full-blown market meltdown after a landmark London court ruling on "secret" car loan commissions sparked chaos across the sector.