9:24 am, September 15, 2025
Stellantis has put £37m to one side as it prepares to take a hit from the car finance mis-selling scandal.
Latest accounts for Stellantis Financial Services UK – the British finance arm of the carmaker – show the sum has been set aside after the company ‘considered a number of different scenarios’.
It the accompanying report, the firm said: ‘The company has recognised a provision of £37.069m in 2024 for discretionary commission claims having considered a number of different scenarios and using a weighted average of scenarios.’
It added: ‘Key sensitivities include the nature of the scheme (full redress or customer complaint led), time periods, commission model, compensation interest rates, and assume excess commission levels. If we stress the most sensitive assumption by 6% (+/-), the provision would change by £3m.’
In conclusion, Stellantis Financial Services UK said: ‘The provision is deemed to be management’s best estimate as at the year end.’
The carmaker’s finance arm is one of many providers that have revealed provisions to cover redress costs, joining Lloyds Banking Group, Santander UK, and BMW’s UK financial services division in making similar statements.
The Financial Conduct Authority (FCA) is currently consulting on a redress scheme for customers who took out loans between 2007 and 2020.
If it rules that customers were unfairly mistreated and that finance firms and brokers did not property tell customers about compensation paid to dealers, consumers could be entitled to compensation.
The redress scheme could cost as much as £18bn and be the finance industry’s biggest payout since the £50m PPI scandal.
The FCA has previously reported that customers would receive, on average, £950 in compensation.
The declaration by Stellantis comes as the FCA begins working with influencers on a major £1m campaign warning customers of the dangers of using claims management companies (CMCs) or law firms to access its compensation scheme.
