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  "path": "/money/santander-news-car-loans-payments-customer",
  "publishedAt": "2026-04-25T18:45:29.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Petrol and diesel prices push up inflation as drivers eye EV switch ahead of September fuel duty hike",
    "Labour to review frozen 45p fuel mileage rates as petition demands change to 2011 rule",
    "National speed limits could be slashed to 60mph to ease fuel crisis amid panic-buying fears",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nSantander has announced that it will not mount a legal challenge against the Financial Conduct Authority's car finance mis-selling compensation programme.\n\nThe high street bank is instead concentrating its efforts on delivering payments to affected customers.\n\n###\n\n\n\n\n\"We have decided not to challenge the schemes and will now focus on their implementation,\" a Santander spokesman said.\n\nThe lender acknowledged the decision was carefully weighed, with the priority of providing certainty to customers, shareholders and the broader motor finance industry ultimately outweighing its objections to certain aspects of the proposed arrangements.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nSantander 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.\"\n\nThe compensation programme encompasses approximately 12.1 million car finance agreements that were mis-sold.\n\nThe FCA revealed in March that average payouts would reach £829 per claim.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\n\nBased on an estimated 75 per cent of those eligible coming forward, the regulator anticipates total redress of roughly £7.5billion.\n\n\nThe watchdog expects millions of claims to be settled during the current year, with the overwhelming majority resolved by the close of 2027.\n\nCustomers who have previously lodged complaints are likely to receive their money first, with lenders now permitted to begin distributing funds immediately, according to guidance issued by the FCA at the end of last month.\n\n### LATEST DEVELOPMENTS\n\n\n\n\n\n\n\n  * Petrol and diesel prices push up inflation as drivers eye EV switch ahead of September fuel duty hike\n  * Labour to review frozen 45p fuel mileage rates as petition demands change to 2011 rule\n  * National speed limits could be slashed to 60mph to ease fuel crisis amid panic-buying fears\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nThe bank also pledged to engage constructively with regulators and policymakers going forward.\n\nThe majority of affected agreements involve discretionary commission arrangements, a practice outlawed in 2021 that allowed brokers and car dealerships to inflate interest rates on vehicle loans in exchange for larger commission payments.\n\nAccording to the FCA, this system created unfair outcomes for motorists who were kept in the dark about these arrangements, denying them the chance to negotiate better terms or seek alternative financing.\n\n###\n\n\n\n\n###\n\n\n\n\nCompensation eligibility extends to individuals who were not informed about high commission levels or contractual ties to particular firms.\n\nThe scheme applies to car finance contracts entered into between April 6, 2007, and November 1, 2024, covering nearly two decades of potentially problematic lending practices across the motor finance sector.\n\nThe FCA refined its redress programme following an extensive consultation that attracted more than 1,000 submissions from motor finance lenders, consumer advocacy organisations, vehicle manufacturers and trade bodies.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nInitial proposals faced criticism from multiple directions, with finance providers arguing compensation levels were excessive and failed to reflect actual customer losses.\n\nMeanwhile, consumer groups and certain parliamentarians contended the scheme would leave drivers undercompensated.\n\nIn response to this feedback, the regulator has narrowed the qualifying criteria to ensure only those genuinely treated unfairly will receive payments.\n\nThe FCA anticipates that approximately one-third of successful claims will be subject to caps, a measure designed to prevent excessive payouts to consumers.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Major high street bank to pay thousands of customers £829 in compensation – Are you one of them?"
}