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Stock impact report

Explainer-Is Britain on the cusp of another multibillion-pound consumer finance scandal? [Yahoo! Finance]

Lloyds Banking Group Plc American Depositary Shares (LYG) 
US:NYSE Investor Relations: lloydsbankinggroup.com/investors
Company Research Source: Yahoo! Finance
cost Britain's financial industry billions of pounds in fresh legal costs and potential customer compensation. The Court of Appeal ruled in October that it was unlawful for lenders to pay commissions to motor dealers without a customer's informed consent, triggering speculation about the nature and scale of possible remedies for affected borrowers. Lloyds Banking Group, Close Brothers and Santander UK have together already set aside more than 1.5 billion pounds ($1.9 billion) to cover potential compensation claims. Some analysts say the fallout could be the costliest for banks since they paid almost 40 billion pounds in compensation to customers for mis-selling payment protection insurance. WHAT WILL THE SUPREME COURT CONSIDER? Reviewing three earlier claims - two against South African lender FirstRand and one against Britain's Close Brothers - the Supreme Court will decide the extent of car dealers' legal responsibility to provide appropriate information to consumers when a Show less Read more
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