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 has set aside an additional £800 million to cover claims, indicating that the number of eligible claims is expected to be greater than initially anticipated. This situation is significant as it highlights the potential financial impact on the bank and raises concerns about consumer trust in financial institutions.

Lloyds Bank has announced it is setting aside an additional £800 million to address potential compensation claims related to the motor finance scandal, bringing its total provisions to nearly £2 billion. This move highlights the bank's acknowledgment of the likelihood that more historical cases may emerge, which could lead to further payouts. This situation is significant as it reflects ongoing challenges within the banking sector and the importance of accountability in financial practices.