Brokers who arranged car financing earned commission on the interest rates that they set for customers.
Lloyds revealed the provision as it announced a big rise in annual profits.
Lloyds revealed the provision as it announced a big rise in annual profits.
The FCA announced last month that it would investigate whether people who believe they were charged too much for car loans were owed compensation.
Meanwhile, the Financial Ombudsman says it has received 17,000 complaints to date about motor finance commission.
Lloyds is seen as the most exposed of the major banks to any claims, as it owns one of the UK’s largest motor finance providers, Black Horse.
Under what were called discretionary commission arrangements, some lenders had allowed car dealers to adjust interest rates on loans, which would improve the commission they received. In short, the higher the interest rate, the higher the commission.
Lloyds revealed the provision as it announced a big rise in annual profits.
Brokers who arranged car financing earned commission on the interest rates that they set for customers.
Lloyds revealed the provision as it announced a big rise in annual profits.
Lloyds revealed the provision as it announced a big rise in annual profits.
The FCA announced last month that it would investigate whether people who believe they were charged too much for car loans were owed compensation.
Meanwhile, the Financial Ombudsman says it has received 17,000 complaints to date about motor finance commission.
Lloyds is seen as the most exposed of the major banks to any claims, as it owns one of the UK’s largest motor finance providers, Black Horse.
Under what were called discretionary commission arrangements, some lenders had allowed car dealers to adjust interest rates on loans, which would improve the commission they received. In short, the higher the interest rate, the higher the commission.
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