Lloyds likely to increase its fund for motor finance claims

LLOYDS Banking Group yesterday announced that it would be likely to increase its motor finance provisions following further updates on the regulatory redress scheme.

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The FTSE 100 banking giant, which owns Black Horse, the UK’s largest motor finance lender, currently tops the list with £1.2bn in provisions.

The Financial Conduct Authority stated on Tuesday that it anticipates its redress programme to cost up to £11bn and cover 14.2m agreements dating back to 2007.

Following the news, Lloyds’ share price rose by 3.5%, with many viewing the scheme - falling at the low end of cost expectations - as a positive outcome.