Lloyds Banking Group Sets Aside Further $1.07 Billion For Car-Loan Redress
By Elena Vardon
Lloyds Banking Group said it is booking a further 800 million pound ($1.07 billion) provision to cover the cost of compensating customers as part of a probe into commissions paid on car loans.
The U.K. lender, which is the largest car-finance provider in the U.K. through its Black Horse brand, had already set aside 1.15 billion pounds for potential payouts and administrative costs.
On Monday, it said the additional charge reflects that it is now likelier that more historical cases are eligible for redress and that the level of compensation is above what had been anticipated in the previous scenario.
The Financial Conduct Authority earlier this month shared details on a program to compensate customers for the payment of commissions that it deems were unfairly charged on car loans by dealerships, a practice it banned in 2021 and has been investigating since early last year.
"Based on the FCA proposals in their current form, the potential impact is at the adverse end of the range of previous expected outcomes," Lloyds said.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
October 13, 2025 02:42 ET (06:42 GMT)
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