Lloyds Banking Group is sticking with its £1.95bn funds total to allow for the recently announced motor finance compensation scheme announced by the Financial Conduct Authority.
The company had originally set aside £1.15bn for the redress scheme but added another £800m in October last year to being the total to £1.95bn.
In a statement it said: “Further to the recent FCA announcement on the final rules for an industry wide redress scheme for motor finance, the group has now undertaken an assessment of the implications and impact of the final rules.
“Further to this analysis the Group does not currently believe any change to the provision for this issue is required.”
But Lloyds said there remained a “number of uncertainties” including response rates, operational costs and any litigation.
“The ultimate outcome may also differ dependent upon potential actions by various parties, including legal proceedings and complaints results at the end of April.
An update will be provided as appropriate with the first quarter The group remains committed to ensuring customers receive appropriate and timely redress.”
