Borrowers could launch claims totalling billions of pounds against banks for mis-sold loans such as mortgages after judges ruled that car finance providers had concealed commission payments from customers.
Lloyds Bank said on Monday that it was “assessing the potential impact” of the Court of Appeal ruling in favour of borrowers who claimed commission payments were not fully disclosed in the terms of their auto loans.
Lloyds said the judgment set “a higher bar for the disclosure of and consent to the existence, nature, and quantum of any commission paid than had been understood to be required or applied across the motor finance industry prior to the decision”.
Shares in Lloyds Banking Group, which are listed on the FTSE 100, were down 1½p, or 2.7