Lloyds and BMW face billions in costs from car finance scandal
Lloyds Banking Group is reserving nearly £2bn to cover potential compensation claims related to a car finance scandal involving hidden commissions, with the FCA proposing a scheme that could cost lenders up to £8.2bn. The bank expects more claims than initially thought, and the scheme aims to compensate millions of drivers for unfair deals made between 2007 and 2024. Industry and consumer reactions vary, with some lenders increasing provisions and campaigners urging swift action.