Overview
- Santander UK postponed publication of its third-quarter UK figures, citing uncertainty over the regulator’s proposed motor finance redress scheme.
- Chief executive Mike Regnier called for government intervention and for material changes to the proposals, warning of risks to jobs, growth and consumers.
- The lender has provisioned £295 million to date and said even a severe downside would not materially affect its capital, liquidity or operations.
- Other lenders including Lloyds, Close Brothers and Barclays have increased provisions and criticised the methodology as they prepare formal responses.
- The FCA’s proposed scheme covers roughly 14 million agreements with average payouts near £700, and the regulator says a managed program is the quickest, fairest route as consultation runs to mid-November.