Lloyds sets aside £450m for car loan fines and payouts

Bank’s profits rise 57% but it says there is ‘significant uncertainty’ over liability amid FCA investigation

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Lloyds Banking Group has been forced to put aside £450m for potential fines and compensation for motor finance customers, after the UK regulator opened an investigation into whether consumers had been charged inflated prices for car loans.

The lender, which also owns the Bank of Scotland and Halifax brands, said there was “significant uncertainty” over the extent of any misconduct or loss to customers that could result in penalties or payouts.