27th Apr 2026 09:29
(Alliance News) - Vanquis Banking Group PLC on Monday became the latest lender to opt not to challenge the Financial Conduct Authority's motor finance redress schemes proposals.
The Bradford, England-based bank said its previously disclosed GBP3.0 million provision relating to motor finance remains unchanged.
In a statement, Vanquis confirmed that it "will not" challenge the FCA's schemes and noted that it "did not participate in discretionary commission arrangements or operate tied selling arrangements."
Vanquis said it remains committed to ensuring appropriate redress to customers where loss has occurred.
The deadline for legal to the FCA's motor finance commission redress scheme is Monday.
Shares in Vanquis Banking were down 0.7% at 110.60 pence each in London on Monday.
Close Brothers PLC told Sky News it will not be challenging the proposals.
"Close Brothers does not intend to challenge the FCA's motor finance redress scheme," the London-based merchant bank said, in a statement provided to Sky News late on Saturday.
"While there are elements of the scheme that we disagree with, after careful consideration we believe that the existing scheme offers a quick, clear and certain route to resolving this matter for all relevant parties."
Separately, Santander UK, part of Banco Santander SA told Reuters on Saturday that: "We have decided not to challenge the schemes and will now focus on their implementation."
On Friday, Sky reported that Barclays has decided on Friday not to challenge the ruling, while the Financial Times recently said Lloyds will also not oppose the decision.
Earlier this month, Lloyds Banking Group PLC said it won't up its motor finance provision, after assessing the scheme.
Secure Trust Bank PLC has also said it did not expect to make any adjustments to its motor finance redress provision.
The FCA's GBP9.1 billion compensation scheme is for consumers who were mis-sold car finance agreements between 2007 and 2024.
The regulator confirmed last month that firms are expected to pay out compensation totalling around GBP7.5 billion, with the total bill rising to GBP9.1 billion when including the cost of running the scheme.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Vanquis BankingClose BrosBarclaysSecure TrustLloyds