Company: LLOBF
Filing Date: 2025-10-14
Form Type: 6-K
Source: 0001654954-25-011690
Chunk: 0

Company: Lloyds Banking Group plc
Filing Date: 2025-10-14
Form: 6-K
Chunk 0
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### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C.20549

#### FORM 6-K

#### Report of Foreign Private Issuer

#### Pursuant to Rule 13a-16 or 15d-16a

#### of the Securities Exchange Act of 1934
<div align='center'>13 October 2025</div>

#### LLOYDS BANKING GROUP plc
<div align='center'>(Translation of registrant's name into English)</div>

#### 5th Floor

#### 25 Gresham Street

#### London

#### EC2V 7HN

#### United Kingdom
<div align='center'>(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports

under cover Form 20-F or Form 40-F.

Form 20-F..X.. Form 40-F

Index to Exhibits</div>

Item

No. 1 Regulatory News Service Announcement, 13 October 2025

re: Motor Finance Update

#### 13 October 2025

### MOTOR FINANCE UPDATE
Further to the recent FCA announcement and consultation paper on an industry wide redress scheme for motor finance, following the Supreme Court judgment handed down on 1 August 2025, the Group has now undertaken an assessment of the implications and impact of the proposed redress scheme.

As previously stated, in establishing our existing provision of £1.15 billion the Group created a range of scenarios to address uncertainties on a number of key inputs, including regulatory responses and outcomes in relation to redress. The FCA consultation paper has provided further detail on its proposed redress approach, in particular the products in scope, situations where it considers inadequate disclosure would give rise to an unfair relationship, proposed redress methodology, engagement approach and time bar. Based on the FCA proposals in their current form, the potential impact is at the adverse end of the range of previous expected outcomes. The proposals are subject to consultation and there remain a number of uncertainties. Accordingly, the Group's approach continues to consider a probability weighted outcome considering a range of scenarios, including scenarios that represent sensitivities to the FCAs current proposals, and intends to take an additional charge of £800 million. This reflects the increased likelihood of a higher number of historical cases, particularly DCA, being eligible for redress, including those dating back to 2007 and also the likelihood of a higher level of redress than anticipated in the previous scenario based provision, reflecting the F