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Lloyds sets aside £1.2bn for car loan mis-selling payouts

Lloyds Banking Group has set aside £1.2 billion for potential claims related to the motor finance scandal, which is £700 million more than previously expected.
The Supreme Court will hear an appeal in March 2025 concerning a ruling that deemed certain commission practices unlawful, potentially leading to over £30 billion in compensation.
The Financial Conduct Authority is investigating allegations of widespread misconduct related to discretionary commission agreements on car loans that were prohibited in 2021.
The Financial Conduct Authority's investigation suggests that 40% of car deals prior to 2021 may have been impacted by mis-selling practices, affecting many customers.

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Birmingham Mail

Lloyds puts aside further £700 million for car finance scandal compensation - Birmingham Live

Lloyds’ pre-tax profits for the year to December are down 20% to just under £6bn, compared with £7.5bn last year.

1 day ago·Birmingham, United Kingdom

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BBC News

Car finance scandal: Lloyds earmarks £1.2bn for potential payouts

The banking group has more than tripled the amount it is setting aside, knocking its profits for the year.

1 day ago·United Kingdom

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Bloomberg

Lloyds Braces for Impact

Get briefed ahead of your morning calls with the latest UK business headlines, key data and market reaction

1 day ago·United States

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The Sun

Major update to car finance compensation claims as Lloyds sets aside £1.29b

BANKS have allocated up to £1.29billion for compensation in a major update in the car finance commission scandal. Customers of several major high street banks who were mis-sold car finance could be in line to receive thousands of pounds in redress. The investigation focuses on past practices where banks allowed car dealerships and brokers to set their own interest rates on loans Lloyds Banking Group has revealed it has set aside another £700mill…

1 day ago·United Kingdom

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The Independent

Lloyds sets aside £1.2bn for car finance saga as profits slide by a fifth

An additional £700 million provision taken in the final three months of the year adds to the £450 million already confirmed last year.

1 day ago·London, United Kingdom

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City AM

Lloyds sets aside over £1.1bn for motor finance claims

Lloyds bank announced on Thursday morning that it had set aside an additional £700m in provisions for potential motor finance payouts, on top of the £450m recorded last year. It has become the latest major lender to increase provisions in what’s becoming an increasingly expensive scandal for the UK’s financial sector. Lloyds has announced the biggest hit. It’s set aside £1.2bn in provisions. Meanwhile, Santander has set aside £295m and Close Bro…

1 day ago·London, United Kingdom

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