Britain's motor finance probe could cost financial industry $38 billion, Moody's says
LONDON, Nov 19 (Reuters) -Total industry costs for Britain's probe into historic motor finance sales practices by some banks and specialist lenders could reach 30 billion pounds ($38 billion), ratings agency Moody's said on Tuesday, as liabilities estimates continue to rise.
A recent court ruling which upheld claimants' appeals has potentially widened the scope of the review, which examines so-called 'hidden' commissions linked to financing of automobile purchases from banks and other lenders.
A review into the matter by the Financial Conduct Authority could ultimately result in redress costs of between 8 billion and 21 billion pounds, Moody's said.
The court ruling could add a further 9 billion pounds, the ratings agency said, bringing the total to 30 billion pounds in its 'worst-case' modelling.
($1 = 0.7911 pounds)
Reporting By Lawrence White, editing by Sinead Cruise
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