The bank is facing a claim for damages from 178,000 consumers who obtained car loans between 2015 and 2021.
Santander has received a class action lawsuit worth over €180 million in favour Car's conditions, the status of the car in the UK.
claim, before investigating it UK Financial Conduct Authority (FCA) Launched in January on PRWe are here for the record, as it is processed by the UK Competition Appeal Tribunal (CAT).
The suit is against Santander UK, Consumer United Kingdom and Spanish parent company Banco Santander. On April 19th A hearing will be held.
The lawsuit includes 178,000 affected, With a preliminary estimate of damages 156 million pounds (182 million euros).
“They are consumers who have financed the purchase of vehicles Between October 1, 2015 and January 27, 2021 [fecha en la que se prohibió la operativa investigada]By using point-of-sale products with financing agreements with the defendants (…). The agreements concluded between the traders and the defendants included discretionary commission agreements that incentivized the traders to broker Agreements with much higher interest rates than the affected persons would have otherwise paid,” the lawsuit documents state.
The lawsuit is led by an international company Scott+Scott, Which also filed a lawsuit against Lloyds and MotoNovo. The company reached a “third-party litigation funding agreement” and did so With the help of Angion Group, A claims administrator specializes in class actions.
Open fronts
The lawsuit filed by the affected parties in the Competition Court is in addition to the investigation they are conducting British regulators regarding these practices.
The supervisors' analysis could lead Santander to pay damages Up to 400 million euros According to calculations of some analysis companies.
Santander has not yet implemented this step There is no provision to cover risks The claim brought before the Competition Appeal Tribunal, nor other claims submitted through channels such as Financial Ombudsman Service (FOS), UK Financial Ombudsman.
“A claim has been brought against Santander Consumer UK, Santander UK and others in the Competition Appeal Tribunal (CAT), alleging that Santander Consumer UK Historical Commission Agreements Concerning used car financing breaches the Competition Act 1998,” Santander UK says in its financial report.
“While some expenses may be incurred in relation to existing or future court claims, FOS claims and CAT proceedings, no legal liability is deemed to have been incurred. It requires recognition of a text at this stage.” Concludes its Santander subsidiary, which currently does not consider it possible to determine the potential impacts of this issue.
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