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Lloyds Banking Group is embroiled in a significant court battle with approximately 30,000 car loan customers who are seeking £66m in compensation. The claims, being handled by the law firm Courmacs Legal, stem from allegations that Lloyds' motor finance arm, Black Horse, engaged in unfair commission arrangements with car dealers, leading to customers being overcharged for their loans. This case is part of a broader car loans commission scandal that has affected numerous consumers. The Financial Conduct Authority (FCA) had proposed a redress scheme worth an estimated £11bn to compensate affected customers. However, the claimants have opted to pursue a court case instead, citing concerns that the FCA's scheme may not provide adequate compensation. Under the FCA's proposed scheme, consumers were expected to receive an average payout of £700 per claim, which is less than half of the £1,500 average payout recommended by some consumer groups. This discrepancy has led claims law firms to argue that the scheme favors lenders over consumers. The court case, expected to be filed in the coming weeks, marks a significant development in the ongoing car finance mis-selling scandal. Courmacs Legal will represent the 30,000 claimants, taking a 28% cut of any successful payout. The firm believes that pursuing a court case is necessary to ensure that their clients receive fair compensation. A spokesperson for the FCA emphasized that their redress scheme is designed to provide consumers with fair compensation quickly and without incurring high fees. Meanwhile, Lloyds Bank has declined to comment on the matter. This case is likely to be the first in a series of omnibus suits against other lenders involved in the motor finance mis-selling scandal. A court of appeal case brought by Lloyds and other banks is currently pending, which could potentially impact the progression of Courmacs's omnibus claims.

Lloyds Banking Group has suffered a significant data breach, exposing personal information of nearly 500,000 customers. The incident occurred due to an IT glitch in its mobile banking apps, which allowed some users to view others' account details, national insurance numbers, and payment references. The glitch, caused by a software defect introduced during an IT update on March 12, potentially affected up to 447,936 customers. Approximately 114,182 people ended up clicking into transactions that revealed sensitive information. Lloyds reported the incident to the Financial Conduct Authority and the Information Commissioner's Office within the required 72 hours. The bank has assured that there is currently no evidence of misuse or malicious activity. The incident raises concerns about customer protections in the digital banking era, especially as banks continue to close branches and push users towards online services. Lloyds has paid £139,000 to compensate 3,625 customers for distress and inconvenience, although no financial losses were reported. The Treasury committee chair, Meg Hillier, emphasized the trade-off between convenience and security in modern banking, stating that consumers must understand the risks associated with online interactions. Lloyds will provide further updates on the incident to the committee in April and September, and is committed to addressing its responsibilities towards affected customers.

Revolut, the UK banking app, has reported a 57% increase in profits for 2025, but warned that its support for energy-intensive sectors such as crypto and AI could lead to a reputational risk. The fintech company, which can now launch as a fully fledged UK bank after a five-year wait for regulatory approval, offers crypto trading and has applied for a banking licence in the US.The company's annual report highlighted that cryptocurrency mining and AI datacentres demand large amounts of power, with competition for electricity supplies getting steeper since the US-Israel war on Iran sent energy prices soaring over the past month. Revolut's chief executive, Nik Storonsky, hailed another “landmark year” for the company, which has 68.3 million individual customers and 767,000 business customers.Revolut's growth has been rapid, with revenues climbing 46% to £4.5bn and a £1.7bn pre-tax profit for 2025. The company plans to offer a wider array of banking services in the future, such as lending and other products, and has launched mortgage refinancing in Lithuania. Despite the potential risks, Revolut believes its digital-first approach and emphasis on financial inclusion could lead to it being “relatively insulated and even benefit from an orderly energy transition, relative to traditional financial institutions”.