Lloyds Bank boss gives major update on car finance scandal - customers feel 'duped'

The boss of one of the UK’s biggest banks has claimed there is no evidence customers were “harmed” as a result of the ongoing car finance compensation scandal. Charlie Nunn, head of Lloyds Bank, stressed investigations had shown customers had not been unfairly treated despite a probe into the sector by the Financial Conduct Authority (FCA).

His response came after MPs suggested that their constituents felt they had been “duped” on car finance deals. The FCA is looking into whether there was "widespread misconduct” in the car finance sector with some drivers paying discretionary commission on their deals. The FCA is set to release its final report soon with a mass redress scheme touted as one of the ways customers could receive compensation.

However, Mr Nunn said: “At this stage we don’t have evidence of harm. That’s not one of the things that’s been focused on, or in fact that we’ve broken the regulation retrospectively.

“If those things were found to be true of course we’d then lean in fully to try to identify the customers that did experience harm as defined by the FCA (Financial Conduct Authority), and then support a remediation programme.”

Instead, Charlie admitted that the specifics on whether motorists were caught out by the fees would be identified on a case-by-case basis.

Charlie added: “When we look at the individual cases… It's looking at that combination of factors that determines whether a customer actually got the right package or the right deal or whether there were harm.

“And as I said at this stage we haven’t had evidence of harm although if it were identified of course we would lean into it.”

Money Saving Expert Martin Lewis has previously stressed road users could be owed thousands of pounds in compensation once the investigation was concluded.

He has warned bills could be on the scale of ‘PPI payouts’ which could be a blow to car finance firms across the country.

The finance guru recently issued an update to anxious road users, warning the next update may come in July.

He posted on social media site X: “What's happening with car finance reclaiming? I'm being asked this a lot.

"No update I'm afraid, the Supreme Court case has been heard and everything is now waiting for its decision. There is no way to know when that'll happen but many I speak to have a working assumption it'll be July."