SANTANDER UK has scrapped its third-quarter results — demanding Government action over the FCA’s proposed motor finance compensation scheme.
Boss Mike Regnier warned the plans could hit the car finance market and wider automotive sector, risking significant job losses.
He called for changes to address “concern in the industry and market to the proposed Financial Conduct Authority redress scheme”.
He added: “Unintended consequences for the car finance market, supply of credit and resulting negative impact on the automotive industry and its supply chain could significantly impact jobs, growth and the broader economy, and cause significant detriment to the consumer.”
The bank has already set aside £295million to cover compensation for customers unfairly sold car loans.
It was expected to increase that, following moves by Lloyds Banking Group and Barclays last week.
But Santander said there is still “uncertainty regarding the final scope, methodology and timing” of any scheme and will provide an update with its full-year results early next year.
Despite the concerns, Santander stressed it does not expect any material hit to its capital, liquidity, operations or prospects.
The FCA proposals come after 14million car finance agreements were deemed unfair, with average payouts estimated at about £700.
ASTON STALLS
ASTON MARTIN has slashed spending as losses deepen and sales slide.
The luxury car-maker will cut five-year investment from £2billion to £1.7billion, and trim this year’s spend to £350million, blaming tariffs and weak demand in China.
Third-quarter revenue fell 27 per cent from the previous year to £285.2million and operating losses more than doubled to £56.1million, with UK sales down 32 per cent.
NEXT PLEASE!
NEXT yesterday delighted investors with a special dividend and another profit upgrade after third-quarter sales beat forecasts.
The FTSE 100 retailer lifted full-year profit guidance by £30million to £1.13billion – its eighth upgrade in just over a year.
It will give back £369million via a share dividend of 310p in January – with an 87p interim payout.
It came as full-price sales for the 13 weeks to October 25 rose 10.5 per cent year on year.
ENERGY DEBT ‘RESET’ BID
OFGEM has unveiled plans to “reset and reform” spiralling energy debt.
Its debt relief scheme could write off £500million and help 195,000 customers.
A consultation out soon targeted people on means-tested benefits with more than £100 of debt between April 2022 and March 2024.
The reform aims to cut £4.4billion of debt — currently adding £52 to average annual bills.
Ofgem will also trial a plan‑to stop new home occupiers being faced with debts run up by someone living there before. It launches next year with a rights guide.
