9:33 am, December 5, 2024
Investors have been spooked by the ongoing motor finance crisis amid mounting uncertainty in the sector.
That is the verdict of Lloyds Bank boss, Charlie Nunn, who has taken aim at October’s landmark Court of Appeal ruling, which sided with borrowers.
Nunn, who has been CEO of Lloyds since 2021, says the decision, which ruled against Close Brother and FirstRand Bank, ‘is at odds with the last 30 years of regulation’.
He now believes that it has sparked an ‘investability problem’ which could have major knock-on effects which are not yet clear, the Times reports.
‘The level of uncertainty means we just don’t know what it’s going to mean yet, Nunn said.
‘We have a legal decision, a Court of Appeal decision, that is at odds with the last 30 years of regulation.
‘The uncertainty that creates in our environment is unique; it’s very different from other economies in the world.
‘Investors are telling us they’re really concerned about the uncertainty; that it creates an investability problem.’
In the immediate aftermath of the court ruling, Lloyds said the decision ‘set the bar higher’ for disclosure of commissions.
The Black Horse owner had already put aside a whopping 450m for ‘remediation’ or compensation in order to cover potential operational and admin costs, which are expected as a result of the current FCA investigation.
