Lloyds Banking Group is seeking to fill a new senior compliance role focused on motor finance oversight as the bank prepares for a wave of compensation claims linked to historic car finance commission arrangements.
The lender is offering a salary of up to £150,700 for a motor finance compliance lead who will head a specialist team responsible for ensuring the group meets regulatory requirements linked to consumer credit and conduct rules.
New oversight role for motor finance
The recruitment drive comes after Lloyds – one of the most exposed lenders – confirmed in October that it was setting aside a total £2 billion to settle the anticipated number of eligible claims.
Millions of UK drivers who purchased vehicles through finance agreements between 2007 and 2024 could be entitled to compensation if their deals involved undisclosed commission payments paid to brokers or dealers.
The issue has become one of the largest consumer finance investigations in recent years, with the Financial Conduct Authority (FCA) examining whether historic discretionary commission arrangements harmed customers. The newly advertised role will lead a centre of excellence responsible for overseeing motor finance compliance across the banking group.
Based within Lloyds’ risk function, the successful candidate will act as the group’s risk lead on motor finance compliance, helping interpret new regulatory developments and maintaining relationships with regulators.
Dealers urged to prepare records
As scrutiny of historic motor finance commission arrangements intensifies, the National Franchised Dealers Association (NFDA) has reminded retailers that documentation and data readiness remain a key priority.
The trade body said dealers should begin reconciling and organising historic files as engagement continues between the Financial Ombudsman Service and the FCA over redress arrangements. NFDA guidance encourages retailers to prioritise locating finance application records, affordability checks and evidence of agreed finance terms, including credit agreements, SECCI documents and e-signature records.
Dealers are also advised to compile historic commission agreements with lenders, mapping how different commission structures applied across time periods, products and finance providers. Retailers should also gather documentation showing how commissions were disclosed to customers at the point of sale, including disclosure documents, scripted explanations, digital journey records and showroom materials.
Get house in order: NFDA
In addition, the NFDA is urging members to document the commission models used over time, such as discretionary commission arrangements (DCA), fixed fees, percentage-based structures and volume incentives, linking them to specific lenders and periods.
Sue Robinson, chief executive of the NFDA, said: “Establishing clear internal procedures in advance will help businesses respond efficiently to potential information requests and customer enquiries, while maintaining consistency across the organisation.”
The NFDA is recommending retailers consider putting in place centralised systems to record and track requests, such as a dedicated email inbox or case management process to ensure that requests from lenders, regulators or customers are captured and managed consistently.
It is also advising that processes for monitoring and overseeing customer complaints and queries are established, supported by appropriate management information and internal reporting to help senior teams maintain visibility of volumes and response times.
“Businesses should also consider whether sufficient resource is available to respond to potential requests and whether staff training or internal guidance may be helpful to ensure teams are prepared,” said the NFDA.
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