Investec has become the latest lender to set aside funds to cover costs relating to an industry-wide investigation into potential mis-selling of motor finance products.
The specialist lender did not disclose the size of the provision for its motor finance business, which is expected to be revealed when the group publishes full-year results in May.
The Financial Conduct Authority announced in January that it was conducting a review into possible mis-selling of car finance because of hidden commissions.
Investec started operating in the motor finance market in 2015 through its acquisition of Mann Island Finance. Gross loans stood at £555 million at the end of March 2021, when the regulator banned discretionary commission payments. At the end of September the motor finance book stood at