Lower third-quarter profits reported alongside first estimate of financial fallout from loan mis-selling scandal

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Santander UK has put aside £295m to cover potential payouts to car loan customers, as the bank issued its first estimate of the financial fallout from the growing car loan mis-selling scandal.

The figures were released alongside the bank’s third-quarter results, which were delayed last month after a court of appeal ruling in October said it was unlawful for two lenders to have paid a “secret” commission to car dealers without borrowers’ knowledge.