Lloyds Banking Group is facing a £66 million lawsuit filed by more than 30,000 consumers who allege the bank sold them car loans they were not eligible for, leading to financial losses. The claim was brought by the consumer group through Courmacs Legal, which is also pursuing similar actions against other lenders.
The lawsuit, filed on March 27, 2026, accuses Lloyds of mis‑selling car finance products that included undisclosed commission arrangements and discretionary commission arrangements (DCAs) that benefited dealers at the expense of borrowers. The claim seeks compensation for the over‑charged interest and fees that consumers claim they paid because of the hidden commissions.
Lloyds has not yet issued a formal response to the filing, but the bank has already set aside £2 billion in provisions for the wider motor‑finance scandal, which includes the current claim. In its 2025 annual report, Lloyds reported a statutory profit after tax of £4.8 billion and a return on tangible equity of 12.9 %, indicating that the £66 million demand represents a small fraction of its earnings base.
The lawsuit comes amid the Financial Conduct Authority’s ongoing investigation into undisclosed commissions in the motor‑finance market and the development of a national redress scheme that could cost lenders between £8.2 billion and £11 billion. Some consumer advocates argue that the FCA scheme may under‑compensate victims, prompting groups like Courmacs to seek direct legal redress.
While the claim is significant for the individuals involved, its impact on Lloyds’ overall financial position is limited relative to the bank’s existing provisions. However, the case adds to the regulatory and reputational risk that the bank faces, and it could influence future FCA scrutiny and the bank’s approach to motor‑finance product design.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.