Lloyds puts aside extra £800m for car finance compensation claims

Banking group raises total provision to almost £2bn on ‘likelihood of more historical cases’ becoming eligible for payouts

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Lloyds Bank has put aside an extra £800m to deal with possible compensation claims over the motor finance scandal, with its total provision now standing at almost £2bn.

The bank, which is one of the most exposed to an ongoing scandal in which drivers were overcharged for loans as a result of commission paid to car dealers, had previously set aside £1.15bn to deal with potential costs.