Britain's Lloyds Banking Group said today it will take an additional charge of £800m, bringing the total impact from the UK motor finance mis-selling scandal to £1.95 billion.
The UK lender, which had previously set aside about £1.15 billion, said the Financial Conduct Authority's (FCA) proposed redress schemeshowed more historical cases dating back to 2007 were likely eligible for compensation.
Lloyds said the FCA's redress calculation approach is "less closely linked to actual customer loss than previously anticipated," suggesting payouts could be higher than the bank initially modelled.
Last week, the regulator proposed a redress scheme for consumers with motor finance compensation claims, estimating the cost at £8.2 billion to £9.7 billion.
