Finance29 March, 20261 min read
Lloyds Faces £66 Million Car Finance Lawsuit As FCA Unveils £8 Billion Compensation
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Lloyds Banking Group faces a £66m car-finance mis-selling lawsuit from about 30,000 borrowers. FCA to publish final redress scheme rules for millions of car-finance customers.
FCA Unveils £8 Billion Scheme
The FCA published its motor finance compensation scheme. It covers 14 million agreements from April 2007 to November 2024. The average compensation per agreement is estimated at £700.
Lloyds Faces £66m Lawsuit
Lloyds is facing a £66 million omnibus lawsuit by 30,000 customers. Courmacs Legal charges a 28% success fee. The move reflects consumer distrust of the FCA scheme.
Industry Provisions and Backlash
Ford increased its provision for redress to £155 million. The FCA's estimated compensation is Europe's second-largest redress programme. The scheme will run for 36 months.