(Reuters) -Britain’s Lloyds Banking Group said on Monday it will take an additional charge of 800 million pounds ($1.07 billion), bringing the total impact from the UK motor finance mis-selling scandal to 1.95 billion pounds.
The UK lender, which had previously set aside about 1.15 billion pounds, said the Financial Conduct Authority’s (FCA) proposed redress scheme showed more historical cases dating back to 2007 were likely eligible for compensation.
Lloyds said the FCA’s redress calculation approach is “less closely linked to actual customer loss than previously anticipated,” suggesting payouts could be higher than the bank initially modelled.
Last week, the regulator proposed a redress scheme for consumers with motor finance compensation claims, estimating the cost at 8.2 billion to 9.7 billion pounds.
($1 = 0.7492 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Eileen Soreng)
