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.
36 Articles
36 Articles
Lloyds adds £800m to car finance scandal fund
Lloyds Banking Group has set aside an additional £800 million to cover compensation claims linked to the UK’s motor finance mis-selling scandal, taking its total provision to £1.95 billion. The lender, one of the largest players in the car finance market, had previously allocated £1.15 billion for payouts. The bank said the increase reflects new estimates from the Financial Conduct Authority… Source
Millions will get a windfall over car finance. Research helps us understand what they’ll do with it
MJTH/ShutterstockMillions of motorists across the UK could be in line for payments of around £700 after car dealers mis-sold finance to earn commission. Finance providers stand to lose billions compensating consumers after the scandal. The UK regulator, the Financial Conduct Authority (FCA), recently announced that lenders must compensate buyers who took out finance for a new or secondhand car. Millions paid more than they should have because of…
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.
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