Lloyds puts aside a further £700m for compensation over car finance scandal

<p>Profits hit as total held back for payouts rises to almost £1.2bn amid uncertainty over final financial impact</p><ul><li><a href="https://www.theguardian.com/business/live/2025/feb/20/uk-consumer-confidence-sinks-lloyds-bank-profits-drop-motor-finance-stock-markets-business-live-news">Business live – latest updates</a></li></ul><p>Lloyds Banking Group has been forced to put aside a further £700m for potential compensation over the ballooning car loan commission scandal, in a move that knocked its annual profits by 20%.</p><p>The latest provision marks a notable jump in the bank’s estimates for the potential cost of the scandal and brings the sum it will hold back for payouts to almost £1.2bn. RBC Capital has estimated the bank could ultimately be on the hook for up to £4.6bn.</p> <a href="https://www.theguardian.com/business/2025/feb/20/lloyds-puts-aside-another-700m-for-compensation-over-car-finance-scandal">Continue reading...</a>