Company: BCDRF
Filing Date: 2025-01-02
Form Type: 6-K
Source: 0000891478-25-000002
Chunk: 30

Company: Banco Santander, S.A.
Filing Date: 2025-01-02
Form: 6-K
Chunk 30
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EUR 805.3 million) (plus interest) to GBP 552 million (EUR 663.5 million) (plus interest) in their Re-Re-Amended Particulars of Claim dated 29 June 2023. The Santander Entities strongly refute the claim. Trial has been fixed on 3 March 2025.

There are ongoing factual issues to be resolved which may have legal consequences including in relation to liability. These issues create uncertainties which mean that it is difficult to reliably predict the outcome or the timing of the definitive resolution of the matter. The provision recognized includes the best estimate of the Santander Entities’ liability to the specific portfolio.

| 28 |     | January - September 2024 |

• Motor Finance Broker Commissions: following the Financial Conduct Authority's (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, Santander Consumer (UK) plc (SCUK) has received a number of county court claims and complaints made to the Financial Ombudsman Service (FOS) in respect of its historical use of discretionary commission arrangements (DCAs) prior to the 2021 rule changes. In January 2024, the FCA commenced a review of the historical use of DCAs between lenders and credit brokers (the “FCA Review”) and whether redress should be payable within all the industry. The FCA Review paused the handling of these complaints to the FOS originally until September 2024 and now extended to 4 December 2025. In addition, a claim has been issued against SCUK, Santander UK plc and others in the Competition Appeal Tribunal (CAT), alleging that SCUK’s historical commission arrangements in respect of used car financing operated in breach of the Competition Act 1998. Given the extension of the FCA Review, the current stay until 25 November 2024 is now likely to be extended until 31 July 2025, subject to the CAT’s approval. On 25 October 2024, the UK Court of Appeal handed down a judgment on three cases related to motor finance commission arrangements of other lenders in which the Court of Appeal has concluded that those other lenders had paid unlawful secret commissions and, in one of the cases, found an unfair relationship existed on its facts. Whilst the judgment may set a precedent for similar claims, both lenders in the case have publicly announced they will appeal the decision to the UK Supreme Court and any application of the judgment will depend on a number of factual and legal points