logo
#

Latest news with #compensationclaims

British bank shares jump after Supreme Court ruling on car loan claims
British bank shares jump after Supreme Court ruling on car loan claims

Reuters

time04-08-2025

  • Business
  • Reuters

British bank shares jump after Supreme Court ruling on car loan claims

LONDON, Aug 4 (Reuters) - Shares in British lenders surged on Monday after a Supreme Court ruling on motor finance claims last week went largely in their favour, although it still left banks facing billions of pounds of potential compensation claims collectively. Lloyds Banking Group (LLOY.L), opens new tab shares jumped 7%, on track for its biggest daily gain in three years, while specialist Close Brothers' (CBRO.L), opens new tab stock was up 21%. Barclays (BARC.L), opens new tab, a smaller player in the market, gained 2.3%, while Bank of Ireland (BIRG.I), opens new tab and Santander ( opens new tab - both exposed through their UK arms, gained 3% and 2.3% respectively. Britain's Financial Conduct Authority (FCA) said on Sunday it would consult on a redress scheme for motorists claiming to have been overcharged, estimating the total bill could hit between 9 billion and 18 billion pounds ($12-24 billion). However, that cost is likely to be substantially lower than analysts' early estimates of more than 30 billion pounds, after the Supreme Court on Friday overturned an earlier Court of Appeal judgment that had widened the scope of valid claims. Banking analysts at RBC said they expected the cost to come in at 11.5 billion pounds, leaving several banks under-provisioned and potentially needing to set aside more cash, but less than the market had expected. Lloyds said on Monday it would keep under review its 1.2 billion pound ($1.6 billion) provision for motor finance claims, and that any change was "unlikely to be material." Close Brothers, which had previously set aside 165 million pounds, made no mention of its provision on Monday but said it would engage with the FCA on its consultation. South African bank FirstRand (FSRJ.J), opens new tab, which mounted the Supreme Court appeal alongside Close Brothers, said it may need to update its own provision following the judgment. "(The judgment) has taken the worst case scenario off the table," said Gary Greenwood, analyst at Shore Capital. He said lenders would likely still face some claims if consumers could prove they had been treated unfairly. Lloyds, Close Brothers, Barclays, Santander and Bank of Ireland had previously set aside nearly 2 billion pounds between them. "We expect this move to accelerate M&A activity due to some lenders having decreased risk appetite but also because of (some) unused provision amounts," said Hyder Jumabhoy, partner at law firm White & Case. The FCA said on Sunday it would launch a consultation on its redress scheme by early October. Car loans dating back to 2007 would possibly qualify for redress. ($1 = 0.7534 pounds)

Lloyds keeps motor finance provision under review after Supreme Court ruling
Lloyds keeps motor finance provision under review after Supreme Court ruling

Yahoo

time04-08-2025

  • Automotive
  • Yahoo

Lloyds keeps motor finance provision under review after Supreme Court ruling

LONDON (Reuters) -Lloyds Banking Group said on Monday it would keep its 1.2 billion pound ($1.6 billion) provision for motor finance claims under review, after a Supreme Court ruling last week went largely in favour of banks but still left them facing millions of potential compensation claims. "The Group currently believes that if there is any change to the provision it is unlikely to be material in the context of the group," the bank said in a statement. "The provision will continue to be reviewed for any further information that becomes available, with an update provided as and when necessary." Britain's Financial Conduct Authority (FCA) said on Sunday it would consult on a redress scheme for motorists claiming to have been overcharged, estimating the total bill could hit between 9 billion and 18 billion pounds ($12-24 billion). The cost is likely to be substantially lower than early analyst estimates of more than 30 billion pounds, after the Supreme Court on Friday overturned an earlier Court of Appeal judgment that had widened the scope of valid claims. Banking analysts at RBC said in a note that they expected the cost to come in at 11.5 billion pounds, but that scenario would still leave several banks under-provisioned and potentially needing to set aside more cash. Close Brothers, which had previously set aside 165 million pounds, also provided no update to its provision in a statement on Monday and said it looked forward to engaging with the FCA on its consultation. ($1 = 0.7534 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Lloyds keeps motor finance provision under review after Supreme Court ruling
Lloyds keeps motor finance provision under review after Supreme Court ruling

Reuters

time04-08-2025

  • Automotive
  • Reuters

Lloyds keeps motor finance provision under review after Supreme Court ruling

LONDON, Aug 4 (Reuters) - Lloyds Banking Group (LLOY.L), opens new tab said on Monday it would keep its 1.2 billion pound ($1.6 billion) provision for motor finance claims under review, after a Supreme Court ruling last week went largely in favour of banks but still left them facing millions of potential compensation claims. "The Group currently believes that if there is any change to the provision it is unlikely to be material in the context of the group," the bank said in a statement. "The provision will continue to be reviewed for any further information that becomes available, with an update provided as and when necessary." Britain's Financial Conduct Authority (FCA) said on Sunday it would consult on a redress scheme for motorists claiming to have been overcharged, estimating the total bill could hit between 9 billion and 18 billion pounds ($12-24 billion). The cost is likely to be substantially lower than early analyst estimates of more than 30 billion pounds, after the Supreme Court on Friday overturned an earlier Court of Appeal judgment that had widened the scope of valid claims. Banking analysts at RBC said in a note that they expected the cost to come in at 11.5 billion pounds, but that scenario would still leave several banks under-provisioned and potentially needing to set aside more cash. Close Brothers, which had previously set aside 165 million pounds, also provided no update to its provision in a statement on Monday and said it looked forward to engaging with the FCA on its consultation. ($1 = 0.7534 pounds)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store