Lloyds boss praises Chancellor's intervention in 'PPI on wheels' car finance scandal
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The boss of Lloyds has welcomed the Chancellor’s intervention in the car loans mis-selling scandal despite a backlash over fears motorists will miss out on billions of pounds in compensation. Rachel Reeves was slammed for ‘playing politics’ after the Treasury this week warned judges at the Supreme Court that PPI-style payouts to drivers risk harming the economy.
Campaigners claim her intervention puts compensation payments at risk, with Lloyds among those facing a bill. Lloyds chief executive Charlie Nunn said he welcomed the Government ‘getting involved’. In an interview with Bloomberg TV at the World Economic Forum in Davos, he said: ‘We are concerned both to make sure that the auto finance and motor finance industry can continue to support customers well, but also that we can remain an investable location where international investors can think regulation and the rule of law is predictable.’.
Analysts at HSBC estimate banks and the finance arms of carmakers could face a bill of £44billion – close to the £50billion paid for the mis-selling of payment protection insurance (PPI). Concerns: Chancellor Rachel Reeves (pictured) was slammed for ‘playing politics’ after the Treasury warned judges that PPI-style payouts to drivers risk harming the economy.
