Lloyds Banking Group has dropped any plans to challenge the Financial Conduct Authority’s £9.1bn motor‑finance redress scheme. The decision spares the UK’s largest vehicle‑loan provider, operating under the Black Horse brand, from a costly court battle and gives the regulator a decisive win just weeks after it trimmed the programme’s scope. Lloyds will now focus on servicing customers rather than litigation.

The FCA’s proposal, first unveiled in October, forced Lloyds to raise its provision to £1.95bn, reflecting the scale of alleged mis‑selling over two decades. Although the bank still disputes the regulator’s methodology, senior executives concluded that accepting the scheme offers certainty for both shareholders and consumers, avoiding further market turbulence and protecting the broader credit market and from regulatory risk exposure.

Lloyds’ stance arrives as South African lender FirstRand exited the UK motor‑finance arena, citing the same redress plan as “deeply flawed” and “unfair.” While other lenders, trade bodies and consumer groups weigh legal options, the FCA maintains a 28‑day challenge window before a judge decides any disputes. The settlement caps liability at £9.1bn, delivering finality for the sector in 2024.