Santander Consumer Finance is one of the major lenders affected by the Financial Conduct Authority's (FCA) investigation into
discretionary commission arrangements (DCAs). As a division of Santander UK plc, Santander Consumer Finance offers car, van, and motorbike financing to consumers. This guide provides an overview of how Santander Consumer Finance operated during the FCA’s investigation period and what steps you can take if your agreement is affected.
Who is Santander Consumer Finance?
Santander Consumer Finance is a dedicated consumer finance division of Santander UK plc, one of the largest high-street banks in the United Kingdom. The division provides financing options for cars, vans, and motorbikes through both dealer networks and direct customer interactions. This makes it accessible to consumers across various sectors, from individual car buyers to businesses seeking commercial vehicle loans.
How Did Santander Consumer Finance Use Discretionary Commission Arrangements?
Discretionary commission arrangements (DCAs) were a significant part of the FCA's motor finance investigation. During the period from 6 April 2007 to 1 November 2024, dealers using Santander Consumer Finance could set interest rates and other terms that might have led to unfair financial benefits for them at the expense of consumers. This practice meant that some customers may have paid higher interest rates than they would have if DCAs were not in place.
The FCA's investigation found that DCAs allowed dealers a degree of flexibility when offering car finance, which could sometimes result in higher costs for borrowers. Santander Consumer Finance was among the lenders involved in these arrangements and thus is required to review agreements made during this period to determine whether customers received unfair treatment.
How Many Santander Consumer Finance Customers Are Affected?
The FCA's investigation into motor finance affects an estimated 12.1 million eligible agreements (FCA, March 2026) across all affected lenders, with a total value of £7.5 billion (FCA estimate). This equates to an average compensation amount of approximately £829 per agreement (FCA estimate), although the actual amounts may vary based on individual circumstances.
Santander Consumer Finance customers who entered into car finance agreements during the period from 6 April 2007 to 1 November 2024 are likely to be affected if their agreements involved DCAs. The number of affected Santander Consumer Finance customers is not publicly disclosed, but it is expected to reflect a significant portion of the lender’s customer base given the extensive use of these arrangements during that time.
How to Check Your Agreement Agreement Type: Review your finance agreement documentation to see if it falls under the types of agreements affected by DCAs, such as Personal Contract Purchase (PCP) and Hire Purchase (HP).
2.
Date Range: Confirm that your agreement was entered into between 6 April 2007 and 1 November 2024.
3.
Discretionary Commission Arrangement Use: Check if the dealer you worked with had a DCA in place during this period.
Your finance agreement documents should contain information about the date of the agreement, the type of financing involved, and details about the lender and dealer. You can also contact Santander Consumer Finance directly to verify your agreement’s status.
How to Complain to Santander Consumer Finance Directly for Free
You can complain to Santander Consumer Finance directly for free without involving any
[claims management company](https://mlj.org.uk/guides/complaints-about-claims-management-companies). Here is a step-by-step guide on how to do this:
1.
Gather Documentation: Collect all relevant documents, including your finance agreement and any correspondence with the dealer.
2.
Review Your Agreement: Ensure that you understand the terms of your agreement and identify any discrepancies or unfair practices that may have occurred due to DCAs.
3.
Contact Santander Consumer Finance: Reach out to Santander Consumer Finance’s customer service department via phone, email, or online chat to initiate a complaint.
4.
Submit Your Complaint: Provide detailed information about the issues you are facing and request an investigation into your agreement based on the FCA's findings.
5.
Follow Up: Keep track of any responses from Santander Consumer Finance and follow up if necessary.
"You can complain to Santander Consumer Finance directly for free - you do not need a claims management company."
What Compensation Could Santander Consumer Finance Customers Receive?
The FCA has estimated an average compensation amount of around £829 per affected agreement (FCA estimate). However, the actual compensation received by individual customers may vary depending on several factors, such as the specific terms of their finance agreements and any financial losses incurred due to unfair practices.
Santander Consumer Finance will review each complaint individually and assess whether you are covered by the FCA redress scheme. based on the FCA's criteria. The amount of compensation offered can be influenced by various elements, including the length of your agreement and any additional fees or charges that may have been imposed unfairly.
Escalating a Santander Consumer Finance Complaint to the Financial Ombudsman
If you are not satisfied with Santander Consumer Finance’s response to your complaint after eight weeks, you can escalate it to the Financial Ombudsman Service (
FOS). The FOS provides an independent review of complaints and helps resolve disputes between consumers and financial service providers.
To escalate a complaint:
1.
Contact the FOS: Visit the FOS website or call their helpline to initiate the escalation process.
2.
Submit Your Case: Provide all relevant documentation and details about your complaint, including any correspondence with Santander Consumer Finance.
3.
Await Review: The FOS will review your case and may contact you for further information.
The FOS process is free of charge, and their decision is binding on both the consumer and the financial service provider. The timeline for a full investigation can vary but typically takes several weeks to months.
Santander Consumer Finance and the FCA Redress Scheme
Santander Consumer Finance has publicly acknowledged its involvement in DCAs and has committed to reviewing affected agreements as part of the FCA's redress scheme. While specific details may not be available at this time, the lender is expected to follow the guidelines set forth by the FCA to ensure fair treatment for customers.
Lenders like Santander Consumer Finance are working through a structured process to identify and compensate those affected by DCAs. This includes assessing each agreement individually and providing tailored redress where appropriate. The timeline for full resolution can vary, but it is essential to stay informed about any updates or provisions set aside by the FCA.
Sources and References
- Financial Conduct Authority (FCA). (2024). "Motor Finance Investigation: Discretionary Commission Arrangements."
- Santander Consumer Finance. Official website and customer service documentation.
- ONS Census 2021, United Kingdom population figures.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.