Lloyds Bank has issued a warning that the ongoing car finance scandal could lead to costs as high as £2 billion. This comes as the bank sets aside an additional £800 million, anticipating a greater number of eligible claims than initially expected. This situation is significant as it highlights the financial repercussions for the bank and raises concerns about consumer trust in financial institutions.

Lloyds Banking Group has announced an additional £800 million set aside to address the ongoing costs related to the car finance mis-selling scandal, bringing the total estimated hit to £1.95 billion. This situation is significant as it highlights the challenges faced by financial institutions in managing customer trust and regulatory compliance, and it raises concerns about the broader implications for the banking sector.