...October 8, 2025 This report does not constitute a rating action. LONDON (S&P Global Ratings) Oct. 8, 2025--S&P Global Ratings today said rated U.K. banks and auto asset-backed securities (ABS) transactions can handle the motor finance compensation payments proposed by the Financial Conduct Authority (FCA). The forecast ú11 billion aggregate cost to lenders is consistent with our expectations and at the lower end of the FCA's previous ú9 billion-ú18 billion estimate. On Oct. 7, 2025, the FCA published a consultation on a redress scheme for historic motor finance commission payments that were deemed unfair in the August 2025 U.K. Supreme Court judgment (see "Bulletin: U.K. Supreme Court Ruling Limits Motor Finance Lenders' Customer Redress Costs," Aug. 4, 2025). The FCA estimated that 14.2 million (44%) of in-scope commission agreements in the April 2007-November 2024 review period were unfair and therefore eligible for compensation. Assuming 85% uptake by affected consumers, the FCA's proposed...
