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Stock impact report

The UK car loan scandal that could cost banks billions [Yahoo! Finance]

Lloyds Banking Group Plc American Depositary Shares (LYG) 
US:NYSE Investor Relations: lloydsbankinggroup.com/investors
Company Research Source: Yahoo! Finance
These loans incentivised car dealers to offer higher interest rates in return for a higher commission, without sufficiently informing borrowers. Consumer association Which! estimated that millions of drivers would become eligible for compensation if the UK's highest judicial authority sides with borrowers. The government, however, sought to intervene in the case amid concerns over the economic fallout. "Such a substantial sum could limit banks' ability and willingness to lend and provide credit at a time when the economic outlook remains uncertain," said AJ Bell investment director Russ Mould. "This may be why the government is seeking to intervene," he added. Marcus Johnson is one of the claimants whose case is under consideration by the Supreme Court. He took out a loan in 2017 when he bought a Suzuki Swift from a car dealer in Cardiff, Wales for £6,500 ($8,400) -- unaware that interest paid on the loan would fund a commission of over £1,600. The Court of Appeal in Oc Show less Read more
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