# Lloyds warns car finance compensation scheme could cost it nearly £2bn

By Russ Mould — 2025-10-13

Russ Mould, investment director at AJ Bell, said: “Lloyds has increased its motor finance compensation provisions by more than two thirds.

“The bank gives the impression it is not happy with the proposed compensation methodology, implying this is not a done and dusted situation.

“It isn’t trying to wriggle out of paying compensation full stop. Instead, it appears to be pushing for a fairer redress system.

“A rising share price represents two things: one, some clarity on Lloyds’ potential exposure; and two, hope that Lloyds might successfully get the regulator to tweak its proposal in its favour.”

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