S&U shares jump after UK car loan compensation plan seen halving claims

S&U

01/04/2026 08:50

April 1 (Reuters) - Britain's S&U SUS.L said on Wednesday that the final regulatory proposal to compensate UK motorists for unfair vehicle loans would halve the number of customers eligible for payouts from the company, sending its shares up as much as 17.4%.

Shares of the specialist motor and property financier were among the top gainers across London-listed stocks, with S&U recording its biggest one-day percentage gain since March 2020.

S&U said nearly 98% of customers at Advantage Finance, its motor finance subsidiary, did not qualify for compensation even before Britain's Financial Conduct Authority (FCA) published a trimmed, final bill this week.

"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," said Karl Werner, CEO of Advantage Finance.

The FCA said on Monday that firms are expected to pay around 9.1 billion pounds ($12.08 billion) in redress, lower than the 11 billion pounds it estimated during the consultation process.

($1 = 0.7534 pounds)

 (Reporting by Rishab Shaju in Bengaluru; Editing by Sonia Cheema)

 ((Rishab.shaju@thomsonreuters.com ; +91 9048142177))