Lloyds and Black Horse: Understanding the £1.95bn Provision

Reviewed on 28 October 2026. Lloyds Banking Group's £1.95 billion motor finance provision is a useful piece of financial context, but it cannot tell a Black Horse customer whether their agreement qualifies for compensation.

Where does the £1.95 billion figure come from?

Lloyds' third-quarter 2025 investor presentation recorded an additional £800 million provision, taking the total to £1.95 billion. It included estimated redress and operating costs. The figure therefore describes a dated accounting assessment rather than an amount entirely available for customer payments.

After the FCA published its final scheme rules, Lloyds said in its 2 April 2026 motor finance update that its assessment did not then require a change to the provision. It also identified continuing uncertainty, including response rates, operating costs and litigation. These statements should be read with their dates, rather than presented as a fresh announcement every time this page is updated.

Why an accounting provision is not a personal award

An estimated business cost does not establish that every agreement was unfair. Nor does it determine the amount payable on a particular agreement. Two customers of the same lender can have different commission arrangements, disclosures and outcomes.

Dividing £1.95 billion by an assumed number of customers would produce a misleading personal refund estimate. It would also ignore administration costs, different agreement values and the possibility that assumptions change. Use your agreement and the lender's written assessment to understand your own position.

What Black Horse customers can prepare

Start with a short record of each agreement: the lender's legal name, reference number, vehicle registration, dates and the address you used at the time. Add copies of any correspondence about commission. If you have already complained, record the complaint reference rather than opening duplicate cases because of another financial-results headline.

For a new complaint, find the current contact route in the FCA lender directory. State what concerns you and ask the lender to investigate the relevant arrangement. Avoid asserting that a provision proves the lender owes you a particular sum.

See our Black Horse compensation guide for lender-specific context and our current timetable for the legal challenge. Our letter preparation service is optional; direct complaints do not require it, and its charges are explained on pricing.