Santander has agreed to a redress scheme that will provide motorists with payouts of approximately £829 each. This decision covers around 12.1 million mis-sold finance deals from multiple firms.
The Financial Conduct Authority (FCA) expects the total amount of redress paid under its scheme to be about £7.5 billion. The scheme addresses hidden, unfair commissions paid to dealers—specifically Discretionary Commission Arrangements (DCAs)—that inflated interest rates between April 6, 2007, and November 1, 2024.
A spokesperson for Santander said: “We have decided not to challenge the schemes and will now focus on their implementation.” Santander added: “This was a finely balanced judgment reflecting our primary desire to bring greater certainty to our customers, shareholders and the wider motor finance sector, factors which outweighed our disagreement with elements of the proposed schemes. We will continue to work constructively with regulators and policymakers to seek to improve the competitiveness of the UK in the interests of all our customers, taxpayers and investors.”
The FCA stated that lenders can start making payments immediately, and people who have already complained are likely to receive their payouts first. The FCA car finance redress scheme is a free compensation programme initiated in 2026 to repay billions to motorists mis-sold finance agreements.
Santander’s decision not to challenge the scheme brings greater certainty for customers and shareholders, despite the bank’s disagreement with some elements of the proposed schemes.
