Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Lloyds sets aside £450m for car finance regulator probe

by February 22, 2024
February 22, 2024
Lloyds sets aside £450m for car finance regulator probe

Banking giant Lloyds has allocated £450 million to cover potential costs related to an investigation into car finance deals conducted by the UK’s financial regulator, the Financial Conduct Authority (FCA).

The FCA initiated an investigation last month to examine whether consumers were overcharged for car loans. The probe focuses on commission arrangements between brokers arranging car financing and lenders, where brokers earned commission based on the interest rates set for customers.

Lloyds disclosed this provision as it reported a significant increase in annual profits, with pre-tax profits rising to £7.5 billion last year, a 57% increase from the previous year.

The investigation concerns discretionary commission arrangements that allowed car dealers to adjust interest rates on loans, potentially inflating costs for consumers to boost broker commissions. These arrangements were banned by the FCA in 2021, estimated to save drivers £165 million annually.

As Lloyds owns Black Horse, one of the UK’s largest motor finance providers, it is considered highly exposed to potential compensation claims arising from the investigation.

While Lloyds has set aside £450 million for potential compensation, the final amount could vary. Analysts speculate that the total compensation bill for the industry could be substantial, potentially running into billions of pounds.

Lloyds’ Chief Executive Charlie Nunn emphasized the need for clarity regarding any misconduct or losses on behalf of customers, welcoming the FCA’s investigation for providing such clarity.

Matt Britzman, an equity analyst at Hargreaves Lansdown, noted that while Lloyds’ provision is lower than some expectations, uncertainty remains about the final outcome of the review and its impact on the bank.

Read more:
Lloyds sets aside £450m for car finance regulator probe

0
FacebookTwitterGoogle +Pinterest
previous post
Respect the menopause or be sued for disability discrimination
next post
James Biden ‘contradicted’ himself during testimony on brother’s involvement in family business: GOP lawmakers

You may also like

Airbnb shows travellers are bucking recessionary fears

February 15, 2023

Why is nobody already selling my idea?

June 3, 2024

Miliband refuses to reveal his personal view on...

February 7, 2025

GDPR UK and Online Gambling: How Gambling Solicitors...

April 28, 2025

BLUETTI to Release AC180, Making Another Breakthrough in...

June 13, 2023

This is Milk hires fresh talent with 15...

May 26, 2023

Royal Mail unable to despatch items abroad after...

January 12, 2023

 6 Types of videos which are useful for...

December 30, 2022

UK businesses say tech is key to unlocking...

November 1, 2022

10 Reasons Why So Many Are Relocating to...

March 4, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025
    • Friday Feature: Incubate Debate

      June 6, 2025
    • Risch urges ‘top to bottom’ USAID spending review after waste, fraud exposed

      June 6, 2025
    • Universities in Libertarian Land

      June 6, 2025
    • Elon Musk may speak to Trump aides in push to calm feud

      June 6, 2025
    • Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,013)
    • Politics (15,545)
    • Stocks (3,131)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved