By Elena Vardon
Lloyds Banking Group said it is assessing the implications of the final redress plan issued by regulators concerning a long-running probe into car-loan commission agreements.
The U.K. lender said Tuesday that the details of the final plan diverge from those previously proposed and require a careful review.
In October, the U.K.'s Financial Conduct Authority shared the parameters of a plan to compensate customers for car financing commission payments that it deems were unfairly charged by dealerships. The announcement followed a Supreme Court judgment that provided legal clarity on the matter.
The regulator on Monday published the final details of the industry-wide plan with some adjustments. Lloyds is exposed to the probe as the largest car-finance provider in the country.
The regulator now expects firms to pay out around 7.5 billion pounds ($9.89 billion) in redress, compared with 8.2 billion pounds previously. The total bill, which includes administrative costs, has been revised down to 9.1 billion pounds from 11 billion pounds.
"Our final approach is fair for consumers and proportionate for firms," the FCA said.
Lloyds, which has already taken large provisions to cover costs and payouts stemming from the redress program, said that it will update the market as and when appropriate.
Close Brothers and Bank of Ireland separately said they are assessing the potential financial impact of the final plan.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
03-31-26 0254ET
