Lloyds Banking Group Allocates £450m for Car Finance Investigation

The UK's financial regulator probes potential overcharging in car loans, prompting Lloyds to set aside funds for possible fines and compensation.

Lloyds Banking Group has set aside £450 million to cover potential costs from an investigation into car finance deals.
The Financial Conduct Authority (FCA) is investigating whether consumers were overcharged for car loans, a practice potentially leading to significant compensation claims.
Lloyds reported a 57% increase in pre-tax profits, amounting to £7.5 billion, alongside announcing a £2 billion buyback plan for investors.
The investigation focuses on 'discretionary commission arrangements' that may have led to consumers paying inflated interest rates.
Other banks are also under scrutiny, but Lloyds, owning one of the UK's largest motor finance providers, Black Horse, is seen as the most exposed.