redress

Lloyds Banking Group is setting aside an additional £800m for car finance compensation claims, bringing the total amount allocated by the bank for redress to nearly £2bn.

Shares in U.K. lenders exposed to a probe into commissions on car loans rose after the country’s financial regulator said the scope and cost of a redress plan is set to be lighter than feared.

The group is continuing to assess the implications of the redress plan and is confident in its capital strength, it said.

It also means the total estimated cost of the redress will be at the lowest end of its estimate, at about £8.2bn.

These and other actions will hamper the ability of workers to fight unfair labor practices and obtain redress.