REG - S & U PLC - FCA Redress Proposals

S&UAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260401:nRSA9281Ya&default-theme=true

RNS Number : 9281Y  S & U PLC  01 April 2026

 

1 April 2026

 

S&U plc

    ("S&U" or "the Group")

 

FCA REDRESS PROPOSALS

 

S&U PLC, the specialist motor and property financier, welcomes the details
of the Financial Conduct Authority's ("FCA") updated redress scheme for motor
finance commissions announced earlier this week (the "Scheme").

 

Following meetings across the industry, including with the Finance and leasing
Association ("FLA") and the FCA itself, Karl Werner, S&U Board Director
and Chief Executive of Advantage Finance ("Advantage"), S&U's motor
finance subsidiary, said:

 

"Our position has always been that, in following regulatory guidelines at the
time, Advantage acted in its customers' best interests and limited redress
should be payable. For instance, Advantage has never offered DCA commissions
or engaged in tied arrangements. Our commission levels as a proportion of the
charge for credit are generally well within those proposed for redress by the
FCA and only exceed them for very small loans. Even before the final rules
were published nearly 98% of Advantage customers did not qualify. We
anticipate these finalised FCA proposals to halve the number of our customers
that are eligible for redress under the Scheme.

 

Advantage also welcomed the simplification of the redress process,
particularly on how customers should be contacted. The company also agreed
with the FCA's proposal that the grounds for rebutting claims should include
cases where there was no better deal available for the customer.

 

Karl Werner concluded:

"Although a redress scheme of any kind is not justified for Advantage in our
view, we are pleased that this matter can now be concluded by the early
Autumn. The provisions we have made for its costs will prove more than
adequate. It should therefore in no way impede the ambitious plans we now have
in place for building Advantage."

 

 

For further information, please contact:

 

 Enquiries                                     S&U plc        c/o SEC Newgate

 Anthony Coombs
 Financial Public Relations                    SEC Newgate    020 7653 9848

 Bob Huxford, Harry Handyside, Aqsa Ali
 Broker                                        Peel Hunt LLP  020 7418 8900

 Andrew Buchanan, Rob Parker
 Broker                                        Berenberg      020 3207 7800

 James Felix, John Welch, Daniel Gee-Summons

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCJBMFTMTTJBPF



            Copyright 2019 Regulatory News Service, all rights reserved