Santander has renewed its criticism of the UK financial regulator after its bill for the motor finance scandal rose to £461m, accusing the Financial Conduct Authority (FCA) of regulatory overreach. The comments came as the bank’s Spanish parent agreed a surprise $12bn takeover of US-based Webster Bank.
Santander UK said it had set aside an additional £183m to cover compensation for customers who were overcharged through unfair commission arrangements between lenders and car dealers. The bank said the provision was based on the FCA’s proposed redress scheme, which it argued goes beyond correcting consumer harm.
The lender has repeatedly raised concerns about the lack of clarity and scale of the proposed compensation programme. Its UK chief executive has warned that the current approach risks damaging jobs, consumers and the wider economy. Despite the rising costs, Santander UK reported a 14% increase in annual pre-tax profit to £1.5bn.
At group level, Banco Santander posted record profits in 2025 and announced the $12.2bn acquisition of Webster Bank, a deal that would significantly expand its US presence. The takeover is expected to boost scale and efficiency, though investor reaction was cautious.
Santander’s criticism highlights growing tension between major lenders and regulators as the industry grapples with the financial fallout from the car finance scandal.
