{"id":125564,"title":"Lloyds Reaffirms £1bn+ Payout Expectation in Motor Finance Scandal","publisher":"Share Talk","author":"sharetalk","published":"2025-08-04T10:16:27+00:00","modified":"2025-08-04T10:16:27+00:00","canonical_url":"https://www.share-talk.com/lloyds-reaffirms-1bn-payout-expectation-in-motor-finance-scandal/","markdown_url":"https://www.share-talk.com/lloyds-reaffirms-1bn-payout-expectation-in-motor-finance-scandal.md","json_url":"https://www.share-talk.com/lloyds-reaffirms-1bn-payout-expectation-in-motor-finance-scandal.json","category":"B2B","categories":["B2B","Blogs","Financial","Technology","Technology, Media & Telecoms"],"tags":["Barclays","Black Horse division","Close Brothers","FCA","Financial Conduct Authority","Lloyds Banking Group","Secure Trust Bank"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/08/dreamstime_l_55717462-scaled.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"**Lloyds Bank** has confirmed it still expects to pay more than **£1 billion** in compensation linked to the **motor finance scandal**, despite the Supreme Court’s ruling on Friday.\n\nIn a statement on Monday, the UK’s largest car finance lender — via its **Black Horse division** — said its anticipated payout remains broadly in line with earlier estimates provided to investors.\n\n> “After initial assessment of the Supreme Court judgment, and pending resolution of the outstanding uncertainties, in particular the FCA redress scheme, the group currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group,” the bank said.\n\nLloyds has already set aside a **£1.15 billion provision** for potential claims. The bank noted this will be kept under review as more information becomes available. **Shares in Lloyds rose 6%** on Monday morning following the update.\n\n### **Bank Shares Surge After Supreme Court Ruling on Car Finance Claims**\n\nShares in some of the UK’s largest banks surged on Monday morning after the **Supreme Court rejected the majority of compensation claims** related to the motor finance scandal.\n\n**Lloyds Banking Group**, Britain’s largest car finance provider via its **Black Horse division**, rose **6%** in early trading. Shares in **Close Brothers** soared **25%**, while **Secure Trust Bank** jumped **19%**, and **Barclays** gained **1.8%**.\n\nThe sharp rally follows Friday’s court decision — delivered after markets closed — which largely dismissed allegations of widespread mis-selling of car loans. The ruling had been delayed to avoid market disruption, amid concerns the claims could result in up to **£44 billion** in payouts.\n\nIn the aftermath, the **Financial Conduct Authority (FCA)** confirmed that its forthcoming redress scheme is likely to cost between **£9 billion and £18 billion**, significantly lower than the worst-case scenario feared by investors."}