Santander UK Sets Aside £295M for Car Loan Mis-Selling Payouts

The bank's profits plummet following a court ruling on undisclosed commissions in car finance deals.

Santander UK's pre-tax profits fell to £143 million in the third quarter, a significant drop from £413 million in the previous quarter.
The bank provisioned £295 million to cover potential payouts and legal costs related to mis-sold car finance commissions.
A recent Court of Appeal ruling requires lenders to disclose commission arrangements to borrowers, raising compliance standards beyond current FCA rules.
Moody's warns that the total compensation bill for the car finance scandal could reach £30 billion across the industry.
Several lenders, including Close Brothers and FirstRand, plan to appeal the court's decision to the Supreme Court, with filings due soon.