Overview
- Lloyds said it does not currently expect to change its £1.95 billion set‑aside for motor finance compensation and will give a further update with first‑quarter results at the end of April.
- The bank flagged major unknowns including how many customers will respond, how much the process will cost to run, and the risk of court action.
- Lloyds shares fell about 1.6% to 96p after the announcement, with broader selling in London stocks also weighing on prices.
- A separate law firm, Courmacs Legal, is expected to sue on behalf of about 30,000 customers seeking roughly £66 million, which would sit outside the FCA’s process.
- The FCA’s final plan narrows eligibility to about 12.1 million deals and pegs the industry bill near £9.1 billion while lifting the average payout to about £830, and it will run two schemes so payments for 2014–2024 loans can start this year with a pre‑2014 scheme due to be set up by August 2026.