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Santander UK Sets Aside £295 Million Over Mis-Sold Car Loans Amid Growing Industry Scandal

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Santander UK has set aside £295 million to potentially compensate customers affected by the mis-selling of car loans, as the controversy surrounding the motor finance industry continues to escalate. The bank’s provision comes amid concerns that the mis-selling scandal could lead to a redress bill of up to £30 billion, with Santander’s move contributing to nearly £1 billion in compensation provisions across the industry so far.

The issue stems from a wide-ranging review by the Financial Conduct Authority (FCA) into potentially unfair commissions in motor finance deals, which has prompted several lenders to set aside funds. Santander’s decision follows a landmark Court of Appeal ruling last month that expanded the scope of the issue and raised the possibility of mass redress for consumers.

The Court of Appeal judgment significantly widened the legal requirements around commission disclosures in motor finance agreements. The ruling found that any commission not properly disclosed or consented to by the borrower was unlawful, making lenders liable for repaying affected customers. This shift in legal interpretation has sent shockwaves through the industry, with lenders revising their practices and temporarily suspending some operations.

Santander’s provision, disclosed in its third-quarter figures, includes estimates for operational and legal costs, as well as potential compensation. The bank acknowledged significant uncertainties regarding the extent of any misconduct, stating that the financial impact could be either higher or lower than the amount set aside. The decision to make provisions follows growing expectations that lenders will be forced to compensate customers due to these mis-selling practices.

The provision also contributed to a sharp decline in Santander UK’s pre-tax profits, which dropped to £143 million for the three months ending in September, down from £558 million during the same period last year. The bank joins other major lenders, including Lloyds Banking Group, which has set aside £450 million for similar issues.

The controversy began in early 2021 when the FCA banned discretionary commissions, which were linked to the interest rates customers paid on loans. The commission arrangements were seen as encouraging dealers to sell more expensive credit to customers. The FCA’s subsequent investigation into these practices has sparked consumer complaints, leading to a review of contracts dating back to 2007.

The Court of Appeal ruling in October compounded the issue, calling into question the adequacy of current FCA regulations. Critics, including the head of the Finance & Leasing Association, have argued that the lack of regulatory clarity allowed the court to intervene, exacerbating confusion in the market. As the legal and financial consequences unfold, the industry awaits further clarity from the Supreme Court, which may ultimately decide the future of compensation claims.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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