Lloyds chief quizzed by MPs over motor finance scandal

LLOYDS Banking Group's chief executive, Charlie Nunn, was put under the spotlight by the Treasury Select Committee yesterday regarding the bank's historical involvement in the motor finance market.

- SAMUEL NORMAN

Nunn defended the bank’s operations in the car financing sector, stating there was “no evidence of harm.”

The controversy surrounding the sector escalated to the Supreme Court in early April as lenders sought to overturn the Court of Appeal’s ruling that it was unlawful for banks to pay a commission to a car dealer without the customer’s informed consent.

Nunn anticipates a verdict from the country’s highest court in July.

The Financial Conduct Authority (FCA) has committed to implementing an industry-wide redress scheme within six weeks if the lenders receive an unfavourable ruling.