Santander UK earmarks £295m for motor finance payouts after landmark court decision

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Santander UK has earmarked £295m in its quarterly results to compensate motor finance customers, following a pivotal court ruling last month.

The bank had postponed its third-quarter results due to the high court ruling, which it claimed left it unable to determine the potential financial implications of the decision.

The judgement sided with consumers, deeming it illegal for car dealers to receive commission from lenders "without obtaining the customer's fully informed consent to the payment".

This provision for the costs associated with the ruling significantly dented Santander's pre-tax profits for the quarter, plummeting to £143m from £413m in the preceding three months.

Santander explained that the £295m motor finance provision "includes estimates for operational and legal costs and potential awards, based on various scenarios using a range of

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