Bank of Ireland doubles UK motor finance redress to £350M over FCA’s proposed car loan compensation scheme.

Bank of Ireland has more than doubled its UK motor finance redress provision to £350 million, citing the FCA’s proposed compensation scheme for mis-sold car loans. The increase reflects higher expected claims, a broader redress methodology, and customer engagement approaches, though final costs remain uncertain. The bank disputes the FCA’s approach, arguing it doesn’t align with a UK Supreme Court ruling on unfairness or reflect actual customer losses. It plans to challenge the methodology and expects the provision to be updated in its full-year 2025 report. The move follows similar increases by Lloyds and other lenders, with the FCA’s scheme potentially affecting 14 million customers.