Finance
UK's Secure Trust raises motor finance mis-selling charge to $28 million
Published by Global Banking & Finance Review®
Posted on October 20, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 20, 2025
1 min readLast updated: January 21, 2026
Secure Trust Bank raises its motor finance mis-selling provision to $28 million, affecting its CET1 ratio. This increase is significantly higher than previous projections.
(Reuters) -Britain's Secure Trust Bank on Monday said it would need provisions of about 21 million pounds ($28.2 million) for compensating customers of the motor financing mis-selling scandal, roughly 16 million pounds higher than its previous projection.
The increase in provisions would reduce Secure Trust's CET1 ratio - a closely watched measure of spare cash at banks - by about 50 basis points to 12.8%, the company added.
($1 = 0.7447 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Harikrishnan Nair)
Motor finance refers to the various financial products that help consumers purchase vehicles, including loans, leases, and hire purchase agreements.
Mis-selling occurs when a financial product is sold to a customer under false pretenses or without proper disclosure of risks and terms.
The Common Equity Tier 1 (CET1) ratio is a measure of a bank's core equity capital compared to its total risk-weighted assets, indicating financial stability.
Provisions are funds set aside by banks to cover potential losses from bad debts or other financial risks, ensuring they remain solvent.
Compensation in finance refers to payments made to customers or clients to rectify losses or damages incurred, often due to mis-selling or service failures.
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