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Lloyds Bank CEO Asserts Motor Finance Issues Will Not Deter Transformation Plan

LONDON, March 18 (Reuters) - Lloyds Banking Group CEO Charlie Nunn stated on Tuesday that he is confident his plan to transform Britain's largest mortgage lender will not be derailed by the ongoing legal and regulatory scrutiny of its motor finance commission arrangements.

Lloyds has set aside £1.15 billion ($1.49 billion) to address potential costs related to a potential customer redress scheme following the sector-wide investigation into the possible mis-selling of car loans, prompted by a Court of Appeal ruling that deemed commission payments without customer consent illegal.

Nunn, speaking at the Morgan Stanley European Financials conference, mentioned, "No one has yet found any evidence of harm or the nature of any harm caused, which is crucial in determining the need for remediation costs and their scope."

Industry analysts have projected that the total compensation bill for the sector could soar to £16 billion, marking it as the most expensive consumer banking scandal in Britain since the mis-selling of payment protection insurance.

($1 = 0.7695 pounds)