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Lloyds Banking Group PLC said it does not currently believe it will need to change its provisions for the motor finance compensation scheme after the Financial Conduct Authority issued final guidance at the start of the week.
On Monday night, the FCA said millions of motor finance customers should receive larger compensation than previously indicated in guidance issued in October. Lloyds said it carried out an assessment of the implications and impact of the final rules, but noted that some elements remain uncertain, including the rate of customer responses, operational costs and whether litigation follows.
The FCA’s final estimate is that an average of £830 compensation would be expected to be paid this year, up from an expected average of £700 per payout when the regulator issued its first calculations last autumn.
The regulator also estimated that 75% of eligible consumers will make a claim, down from 85% in the original consultation.
Lloyds said the ultimate outcome may differ depending on actions by various parties, including legal proceedings and complaints. The bank added that it will provide an appropriate update with its first quarter results at the end of this month.
Lloyds said it remains committed to ensuring customers receive appropriate and timely compensation.

In brief\n\nBitcoin dropped to about $93,000, falling back below the EMA50 and putting its recent golden cross at risk of invalidation. The global crypto market cap stands at $3.15 trillion, down 2.38% in 24 hours. On Myriad Markets, 82% of the money is betting on Bitcoin pumping to $100K before…