Santander urges ministers to intervene in UK car finance compensation scheme

Santander urges ministers to intervene in UK car finance compensation scheme

Lender’s chief executive says redress proposals could affect jobs, supply chains and broader UK economy

Santander UK has urged the government to intervene in the £11bn car finance compensation scheme, claiming that the current proposals could end up inflicting “significant” harm to consumers, jobs and the broader economy.

It marks some of the strongest criticism to date of the Financial Conduct Authority’s (FCA) redress scheme, which is meant to draw a line under 14m historic car loan contracts that may be deemed unfair because of commission arrangements between lenders and car dealers.

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