Lloyds profits plunge 36% as it feels impact of UK car finance scandal

Bank's drop in quarterly earnings comes after it put aside further 800m to cover expected wave of driver claims

Lloyds Banking Group profits have been sent plunging by more than a third by the car loans commission scandal, as the lender steels itself for a surge in compensation payouts to drivers.

The high street bank took the 36% hit in the third quarter after putting aside a further 800m to cover the prospective costs of a redress scheme proposed by the Financial Conduct Authority (FCA).