Lloyds puts aside extra £800m for car finance compensation claims

Banking group raises total provision to almost 2bn on likelihood of more historical cases' becoming eligible for payouts

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Lloyds Bank has put aside an extra 800m to deal with possible compensation claims over the motor finance scandal, with its total provision rising to almost 2bn.

The bank, one of the most exposed to an ongoing scandal in which drivers were overcharged for loans as a result of commission paid to car dealers, had previously set aside 1.15bn to deal with potential costs.