S&U - Regulatory uncertainty holding back recovery

S&U’s trading update, covering the H225 period up to 10 December 2024, contrasts strong growth in the property lending division with regulatory headwinds for motor finance. Positive news of the lifting of temporary restrictions on motor finance collections was quickly followed by a surprise Appeal Court ruling against other lenders regarding FCA-compliant motor finance commissions. This is a separate issue from that of discretionary commission, to which S&U is not exposed. The Supreme Court has agreed to hear an appeal, a development of great significance to lenders across the consumer finance sector and the regulator.