Santander has agreed to pay compensation for its portion of mis-sold motor finance deals.
The banking giant confirmed it would not challenge a redress scheme set out by the financial watchdog in March and will now focus on paying back affected customers.
“This was a finely balanced judgement reflecting our primary desire to bring greater certainty to our customers, shareholders and the wider motor finance sector, factors which outweighed our disagreement with elements of the proposed schemes,” a spokesperson said.
Payouts are due on about 12.1 million mis-sold deals from an array of lenders at an average of £829 each, the Financial Conduct Authority has said.
The FCA expects the total amount of redress paid under its scheme to be about £7.5bn, based on about 75% of eligible consumers making a claim.
It thinks millions of claims will be paid out this year and the vast majority will be settled by the end of 2027.
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