Further update re FCA Motor Finance redress scheme

Secure Trust Bank PLC ("STB" or the "Group") has undertaken an initial assessment of the potential impact of the final rules recently announced by the Financial Conduct Authority ("FCA") for the industry wide schemes relating to UK motor finance commissions.

Following this assessment, the Group does not consider that any adjustment to its motor finance commission provision is currently necessary. While there have been some welcome developments in the final rules, the ultimate financial impact remains uncertain due to a number of factors. These include several areas requiring judgement, the need for further clarification on the application of the rules, information and assistance required from vehicle dealers/brokers and the outcome of any legal challenges. The Group continues to monitor developments closely.

STB believes that its vehicle finance lending was designed to provide competitive, fair, finance to its selected customer segments. The Group remains committed to ensuring customers receive appropriate redress where there has been customer harm from an unfair relationship. However, it considers that the FCA's approach to assessing unfairness is not aligned with the Supreme Court judgment in Johnson v FirstRand, where the test for unfairness is highly fact specific and must take into account all relevant factors.

• Business Finance under the Secure Trust Bank brand; and
• Consumer Finance through its V12 Retail Finance division.

​

​

Secure Trust Bank PLC, Yorke House, Arleston Way, Solihull, B90 4LH.