City A.M.: Santander, Lloyds face £1bn car finance claim for pushing customers into pricey deals

Santander and Lloyds face a new UK lawsuit over alleged “anti-competitive agreements” they had with car dealerships that pushed customers towards more expensive finance options when they were buying second-hand cars. 

The claim, filed at the Competition Appeal Tribunal last month, targets three of the largest motor finance providers: Santander UK, Black Horse, which is part of Lloyds Banking Group, and Motonovo Finance. 

The claim alleges that between 2015 and 2021 consumers were unknowingly charged higher interest rates “due to a network of anti-competitive agreements between providers of motor finance and automotive dealers”, where car dealers were given greater commission in return for getting customers to agree to finance deals that charged a higher rate of interest.