Wednesday 18 March 2026 1:37 am  |  Updated:  Wednesday 18 March 2026 8:43 am

Is the motor finance scandal making City banks trim the fat?

By: Samuel Norman

Senior City Reporter

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In the fallout of the multi-billion pound motor finance scandal, bank bosses are getting their house in order. 

The landmark saga, which began with the UK’s financial watchdog’s review into the market over two years ago, centres around the use of ‘secret’ agreements between car dealers and lenders that left customers in the dark on how much commission salesmen were pocketing.

As provisions for potentially staggering payouts grew, a number of banks with exposure to the motor market have turned inwards and embarked on drastic cost-cutting regimes.

So is the new-found prudence a direct result of the fall out from the car finance scandal? 

Banking chiefs wouldn’t say so.

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Indeed, Mike Morgan, who took the helm at Close Brothers in January 2025, told City AM........

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