LONDON (Reuters) – Lloyds Banking Group CEO Charlie Nunn said on Tuesday he saw no risk his transformation plan for Britain’s biggest mortgage lender would be blown off course by the legal and regulatory scrutiny into its motor finance commission arrangements.
Lloyds has provisioned 1.15 billion pounds ($1.49 billion) to cover the costs of a potential customer redress scheme linked to the sector-wide review into the potential mis-selling of car loans, after the Court of Appeal ruled it was unlawful for banks to pay commissions without a customer’s informed consent.
“No one has yet found any evidence of harm or if there was harm, what that looks like.
And that’s one of the key drivers of whether there is a remediation expense and what it looks like,” Nunn told the Morgan Stanley European Financials conference.
Analysts have estimated the sector’s total compensation bill could reach 16 billion pounds, making it the costliest consumer banking scandal in Britain since the faulty sales of payment protection insurance.
($1 = 0.7695 pounds)
(Reporting By Sinead Cruise; Editing by Tommy Reggiori Wilkes)
