Lloyds assessing implications of motor finance court rulings

28th Oct 2024 07:16

(Sharecast News) - Lloyds Banking Group updated the market on recent Court of Appeal rulings concerning motor commission arrangements on Monday, which set a new standard for motor dealers acting as credit brokers, requiring them to disclose commissions paid by lenders more comprehensively to customers.

The FTSE 100 bank said that according to the Court of Appeal, lenders were also liable for any non-disclosures by dealers.

That decision raised the bar for disclosure and consent, surpassing the industry's previous practices, which were based on regulatory guidance from the Financial Conduct Authority (FCA) and earlier legal precedents.

Lloyds noted that the rulings extended beyond the scope of the FCA's ongoing review into motor commissions.

It said it was currently evaluating the potential impact and broader implications of the decisions while awaiting the outcomes of appeal applications to the UK Supreme Court by the lenders involved.

Lloyds said it would provide further updates to the market as necessary.

Reporting by Josh White for Sharecast.com.