The U.K. Treasury has sought permission to intervene in the motor finance commissions appeal that will be heard in the Supreme Court in April 2025. This case concerns the lawfulness of certain commissions paid to motor finance brokers by lenders. As the largest car finance lender in the U.K. market, the Lloyds Banking Group (Lloyds) will be watching the case carefully. Whatever the outcome, it is likely to see further remediation requirements related to discretionary commissions, although in our view, these should continue to be manageable for the bank. In October 2024, judgments by the Court of Appeal deemed car finance commission payments to be unlawful where customers were not sufficiently informed about them, giving rise to a lack of
