66M Pound Lawsuit Against Lloyds Banking Group

0:00On March 27, 30,000 car loan customers are taking Lloyd's banking group to court with a group lawsuit worth 66 million pounds. They're represented by claims firm, Cormac's legal, and are ditching the financial regulators upcoming compensation plan over worries it won't pay, enough. This stems from a massive car finance scandal, where drivers got overcharged through hitting commissions between lenders and dealers. The financial conduct authority plans an 11 billion-pound redress scheme, but early details suggest average payouts of just 700 pounds per claim. Consumer groups and law firms argue that's too low half of the 1,500 pounds they say people deserve. They claim big banks lobbied hard to keep payout small, even warning it could force some lenders out of business. Meanwhile, the government has stepped in, too, with officials urging judges to hold back on huge awards. Cormac expects more group suits against other lenders soon, backed by funding firms. A court appeal from Lloyd's and others could slow these cases, set for hearing in April,

1:04but the firm doesn't anticipate big delays. The regulator insists its free scheme delivers quicker cash without big legal fees eating into it.