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The bank’s hopes of shielding several billions of pounds in front of a failure scandal suffered a blow on Monday after the judges prevented the British government from supporting the industry in an impending court case.
The Ministry of Finance had taken the unusual step to apply for permission to intervene in the above case of the Supreme Court, and warned that a disadvantageous decision could affect the banking sector and stunt growth.
The decision of the five -member jury, including the President of the Supreme Court, Lord Reed, to prevent the government from doing so Banks In view of a compensation calculation that runs in tens of billions. Reasons were not specified for the rejection.
Shares in Close Brothers, which are among the exposed banks for car loans, and last week they said that they were 7 percent of 165 million on Monday.
In April, the Supreme Court is due to hear a calling of car loan providers who questioned a judgment of the Court of Appeal last year, which was on the side with consumers who had complained about “secret” commissions for car loans.
The verdict that it was illegal for banks to pay a car dealer without paying a commission without the customer’s declaration of consent has sent shock waves by the banking system.
Lloyds Chief Executive Charlie Nunn said in December that Great Britain was faced with an “investment problem” according to the court ruling.
Lloyds, who belongs to the British Black Horse of the British automotive financing provider, has booked a provision of 450 million GBP to cover potential legal remedies and legal costs.
The Ministry of Finance said: “We are the British Ministry of Economic Affairs, so it was right for us. We respect the decision of the Supreme Court. “
