Industry News

Major update to car finance compensation claims as Barclays and Lloyds Bank sets aside £1.29billion

Lloyds Banking Group has revealed it has set aside another £700million for potential compensation relating to motor finance commission arrangements this morning.

The bank said the provision – taken in the fourth quarter, and adding to the £450million provision taken last year – was in light of a court judgment on the issue.

It said that “clearly significant uncertainty remains around the final financial impact”, and that it welcomes the outcome of a Supreme Court hearing set for April.

Barclays has additionally allocated £90million in response to the car finance scandal, while Santander revealed last year that it had earmarked £295 million for potential payouts.

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