Lloyds has been accused of dragging its feet in its handling of thousands of complaints from customers who claim they were mis-sold motor finance.Â
Britain’s biggest lender last week said it would fight plans for a £11 billion compensation scheme after the cost of the scandal caused its profits to plunge.
The bank, whose Black Horse unit dominates vehicle loans, has set aside almost £2 billion to cover payouts to drivers who borrowed to buy cars with hidden commission payments from 2007 to 2024.Â
It argues the Financial Conduct Authority’s redress scheme is ‘too broad’ with payouts averaging £700 ‘disproportionate’. It has threatened to take the regulator to court if it does not get its way. But now Lloyds and other lenders stand accused of ‘doing everything they can to frustrate and delay’ payouts to those mis-sold car finance.
Counting the cost: Lloyds has been accused of dragging its feet in its handling of thousands of complaints from customers who claim they were mis-sold motor finance
‘Drivers who were misled deserve fair compensation quickly and transparently,’ said Lizzy Comley of Slater & Gordon, which acts for some claimants. ‘The behaviour of some lenders risks undermining that process.’
The law firm noted how Black Horse insists on sending responses by post, saying: ‘Despite repeated requests for digital communication, it continues to send all responses by post. The impression is Black Horse is uncooperative and unconcerned about the additional burden its approach places on us and our clients.’
Black Horse said customers should avoid using claims management companies ‘as they risk losing up to a third of their claim in fees’, adding: ‘The FCA has made clear that under the proposed scheme, lenders will contact customers directly. Where customers have signed up with one or more claims companies, they can terminate those agreements.’
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