A MAJOR updater has emerged regarding the car finance commission scandal, as banks allocate up to £1.29 billion for compensation.
Customers at Lloyds Bank and several major high street banks who were mis-sold car finance are in line to receive thousands of pounds in redress.
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 also set aside £90million for car finance scandal.
Last week, bank Close Brothers warned it expects to set aside up to £165 million in the first half of the year to cover possible legal and compensation costs related to the review into car loans commission.
