REG - Lloyds Banking Group - Motor Finance Update

Lloyds BankingAnnouncement

28/10/2024 07:00

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RNS Number : 8358J  Lloyds Banking Group PLC  28 October 2024

 

 

            28 October 2024

 

 

MOTOR FINANCE UPDATE

Lloyds Banking Group plc (the Group) notes the recent Court of Appeal
decisions on Wrench, Johnson and Hopcraft relating to motor commission
arrangements. The Group also notes the intention of the lenders to appeal the
decisions to the UK Supreme Court.

 

The Court of Appeal has determined that motor dealers acting as credit brokers
owe certain duties to disclose to their customers commission payable to them
by lenders, and that lenders will be liable for dealers' non-disclosures. This
sets a higher bar for the disclosure of and consent to the existence, nature,
and quantum of any commission paid than had been understood to be required or
applied across the motor finance industry prior to the decision. Our
understanding of compliant disclosure was built on FCA / regulatory guidance
and previous legal authorities. These decisions relate to commission
disclosure and consent obligations which go beyond the scope of the current
FCA motor commissions review.

 

The Group is assessing the potential impact of the decisions, as well as any
broader implications, pending the outcome of the appeal applications. The
Group will update the market, if and as appropriate.

 

-END-

 

For further information:

 

Investor Relations

Douglas Radcliffe
 
+44 (0)20 7356 1571

Group Investor Relations Director

douglas.radcliffe@lloydsbanking.com

 

Tom
Grantham
+44 (0)7851 440 091

Investor Relations Senior Manager

thomas.grantham@lloydsbanking.com

 

Sarah Robson
 
+44 (0)7494 513 983

Investor Relations Senior Manager

sarah.robson2@lloydsbanking.com

 

 

Corporate Affairs

Matt Smith
 
+44 (0)20 7356 3522

Head of Media Relations

matt.smith@lloydsbanking.com

FORWARD LOOKING STATEMENTS

This document contains certain forward-looking statements within the meaning
of Section 21E of the US Securities Exchange Act of 1934, as amended, and
section 27A of the US Securities Act of 1933, as amended, with respect to the
business, strategy, plans and/or results of Lloyds Banking Group plc together
with its subsidiaries (the Group) and its current goals and expectations.
Statements that are not historical or current facts, including statements
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required; changes to the Group's credit ratings; fluctuations in interest
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operational risks including risks as a result of the failure of third party
suppliers; conduct risk; technological changes and risks to the security of IT
and operational infrastructure, systems, data and information resulting from
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or failed internal or external processes or systems; risks relating to ESG
matters, such as climate change (and achieving climate change ambitions) and
decarbonisation, including the Group's ability along with the government and
other stakeholders to measure, manage and mitigate the impacts of climate
change effectively, and human rights issues; the impact of competitive
conditions; failure to attract, retain and develop high calibre talent; the
ability to achieve strategic objectives; the ability to derive cost savings
and other benefits including, but without limitation, as a result of any
acquisitions, disposals and other strategic transactions; inability to capture
accurately the expected value from acquisitions; assumptions and estimates
that form the basis of the Group's financial statements; and potential changes
in dividend policy. A number of these influences and factors are beyond the
Group's control. Please refer to the latest Annual Report on Form 20-F filed
by Lloyds Banking Group plc with the US Securities and Exchange Commission
(the SEC), which is available on the SEC's website at www.sec.gov, for a
discussion of certain factors and risks. Lloyds Banking Group plc may also
make or disclose written and/or oral forward-looking statements in other
written materials and in oral statements made by the directors, officers or
employees of Lloyds Banking Group plc to third parties, including financial
analysts. Except as required by any applicable law or regulation, the
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date, and the Group expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statements
contained in this document whether as a result of new information, future
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this document do not constitute a public offer under any applicable law or an
offer to sell any securities or financial instruments or any advice or
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