Stellantis sets aside £37m for finance mis-selling

Stellantis Financial Services UK is the latest auto finance provider to disclose its provision for compensation claims arising from mis-selling agreements and failing to be transparent about commission arrangements, with the company’s annual report for the year ending 31 December 2024 showing some £37m has been set aside.

Documents filed with Companies House show  a £37.069m provision discretionary commission claims, with Stellantis noting the lender has “considered a number of different scenarios”.

In arriving at the £37m figure, Stellantis said it had regard for “key sensitivities” which included the nature of the scheme, time periods, commission models, compensation interest rates, and assumed excess commission levels. The lender said if the most sensitive assumption was stressed by 6% (+/-), the provision would change by £3m.

These calculations pre-date the announcement of the Financial Conduct Authority’s industry-wide redress scheme, which is scheduled to be open for consultation in early October. There will be a six-week period for comments, with the regulator aiming to have details of the scheme decided before the current pause on consumer motor finance complaints ends in December.

Previously, Lloyds Banking Group has revealed at £1.15bn provision for claims, while Santander UK has put aside £295m and BMW’s UK financial services division has earmarked £70m.