Lloyds bank faces £66m court battle with car loan customers

Law firm is preparing claim on behalf of 30,000 consumers who fear the FCA’s redress scheme will shortchange them Lloyds Banking Group is facing a court battle with 30,000 aggrieved car loan customers who are to abandon the City regulator’s official redress scheme amid fears it will shortchange consumers and favour lenders. The claims law firm Courmacs Legal is planning to file a £66m omnibus claim on behalf of borrowers who believe they were financially harmed by car loan contracts set up by Lloyds’ motor finance arm, Black Horse. The grievances are part of a much wider car loans commission scandal, in which drivers were overcharged for their loans due to unfair commission arrangements between lenders and car dealers. However, the omnibus case, which is expected to be filed in the coming weeks, means consumers are deciding to pre-emptively waive their rights to the Financial Conduct Authority’s (FCA) estimated £11bn compensation scheme, even before the final details are due to be set out on Monday. That is despite claims law firms such as Courmacs taking a 28% cut of any potential payout. The news comes as claims law firms and consumer groups allege that borrowers will e