According to reports, the Spanish company that owns Santander is contemplating separating its car finance division from the rest of its UK operations. This move to revamp the organization amid the ongoing missold PCP scandal may have a knock on effect for those entitled to compensation.
Banco Santander has been assessing the outlook for its UK operations in recent months, amidst increasing concerns surrounding regulations and expenses. This stems from the consequences of the ever-growing car finance commission scandal, which experts estimate could result in up to £1.9bn in reparations to its previous borrowers.
Per Bloomberg’s report from undisclosed insiders, there are plans to restructure the business by relocating the consumer finance division, which currently houses their car loan operations, outside of Santander UK. This proposed division would need to be authorized by financial regulators before being implemented. A representative for the bank chose not to provide a statement on the matter.
It was revealed in January that Santander UK may be on the market, although authorities in the City have expressed doubts about finding a buyer until the ultimate expenses of the motor finance commission controversy are determined.
Whats Next For the Car Finance Scandal?
Later this year, a ruling from the supreme court is expected. In the event that the decision is in favour of consumers, Santander and other car loan companies could potentially be responsible for a total cost of £30bn.
In light of a court of appeal ruling on the car finance scandal, Santander UK allocated a sum of £295m in November for potential payouts to affected customers. Other lenders such as Close Brothers have similarly set aside money for compensation.
The October judgment greatly enlarged a Financial Conduct Authority investigation into commissions for car finance and caused estimates for compensation to skyrocket. This groundbreaking ruling concluded that making hidden commission payments to car dealers who facilitated loans, without informing borrowers of the amount and conditions of the commission, was against the law.
Did you take out a PCP contract with Santander or another lender? You could be eligible for compensation.
Seeking compensation is crucial for consumers impacted by the car finance scandal, and many may be unaware of their rights to compensation. You can find more about PCP contracts here.
If you believe you have been affected by the ongoing PCP controversy, it is you may be entitled to financial redress. At Friends Legal, our experienced team is dedicated to securing the compensation you are entitled to. Our solicitors operate on a no-win, no-fee policy, providing reassurance that in the event your claim is unsuccessful, you will not face any charges.
Enter your details on our form to start your claim today.
