Lloyds Braces for Potential £4.2bn Payout in Motor Finance Compensation
2025-01-06
This is Money
Following the Court of Appeal's recent Hopcraft judgement, investment bank Keefe, Bruyette & Woods (KBW) has increased estimates on the potential liabilities for several lenders, including Lloyds, which may face a 'conservative' £4.2bn payout in motor finance compensation. This update reflects the financial sector's growing concerns over motor finance regulations and the potential impact on lenders. With the UK's financial services industry under scrutiny, lenders are preparing for a significant compensation payout, highlighting the need for robust financial planning and risk management strategies in the face of evolving motor finance laws and regulations, including consumer finance and personal loans.
