Bank of Ireland Doubles UK Motor Finance Charge to £350 Million

Bank of Ireland Group Plc is sharply increasing its estimate for the cost of compensating customers who were missold car loans to £350 million (€403 million), the latest lender to reassess its calculations after the UK regulator outlined a more sweeping redress program than expected.

The Irish bank, which had previously booked a provision of £143 million, said in a statement Monday that the jump is due to “the increased likelihood of a higher number of eligible cases, the construct of the proposed redress methodology and the customer engagement approach.” It said it didn’t not believe the FCA’s methodology “reflects the actual loss to customers or achieves a proportionate outcome.”