US EditionUK's Lloyds estimates additional $1.1 billion charge from motor finance scandal
- On Monday Lloyds Banking Group set aside an additional £800 million for car finance redress provisions, taking total reserves to £1.95bn.
- Last week the Financial Conduct Authority published a consultation covering up to 14.2 million car finance agreements, with average payout £700 and market implication £8.2bn.
- Lloyds Banking Group said it will challenge the FCA because it believes the scheme overestimates compensation and noted, `Based on the FCA proposals in their current form, the potential impact is at the adverse end of the range of previous expected outcomes.`
- Shares in Lloyds fell last week after the bank warned of a potential "material" increase in provisions, while peers such as Close Brothers prepare to raise reserves on Monday.
- Legal and historical context includes commission arrangements, unfair contract terms and inaccurate sales information, with the FCA estimating 44% eligibility despite the Supreme Court ruling in August and recalling Lloyds' £22bn PPI scandal cost.
28 Articles
28 Articles
Lloyds could fork out £2billion in car finance scandal compensation with drivers set for £700 payment
One of the UK's largest banks has announced that it will set aside a further £800million to cover potential compensation costs linked to the car finance misselling scandal
The Independent
The Independent (US)Lloyds warns car finance compensation could cost it nearly £2bn due to historic cases
Most of the car finance deals covered by the FCA’s scheme involve DCAs
UK's Lloyds estimates additional $1.1 billion charge from motor finance scandal
Britain's Lloyds Banking Group said on Monday it will take an additional charge of 800 million pounds ($1.07 billion), bringing the total impact from the UK motor finance mis-selling scandal to 1.95 billion pounds.
Lloyds warns car finance compensation scheme could cost it nearly £2bn
The banking group said it was expecting there to be a higher number of historical motor finance agreements that are eligible for redress. Lloyds Banking Group has estimated the car finance compensation scheme could cost the bank nearly £2 billion, after putting aside an extra £800 million for the mis-selling saga. The banking group said it was expecting there to be a higher number of historical motor finance agreements that are eligible for redr…
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