Lloyds Warns It Will Likely Take Fresh Car Finance Provision (2)

Lloyds Banking Group Plcsaid it will likely have to set aside an additional provision to compensate customers who were missold car loans after the UK’s finance watchdog kickstarted a redress program.

The amount may be material, Lloyds said in a filing on Thursday. Lloyds has already set aside £1.15 billion ($1.54 billion) to cover costs tied to the refunds.

“Uncertainties remain outstanding on the interpretation and implementation of the proposals but based on our initial analysis and the characteristics of the proposed scheme, an additional provision is likely to be required which may be material,” according to the filing. ...