Ford has become the latest company to be affected by the ongoing motor finance controversy as it sets aside some £61 million,
The car giant's branch FCE Bank has accounted for this provision within its º£½ÇÊÓƵ motor finance arm, recent financial statements show.
FCE Bank, headquartered in Essex, cited the set-aside as an "estimated economic outflow" in anticipation of a potential compensation scheme.
The bank said: "There remains significant uncertainty as to the extent of customer loss and the terms of any potential redress scheme."
Ford now aligns with leading financial institutions such as Lloyds, Santander, and Close Brothers in gearing up for what might be a costly situation, as reported by .
At the heart of the scandal is the inquiry into discretionary commission models, which permitted brokers considerable leeway in setting interest rates,
These commission tactics have been prohibited since 2021 by the regulatory body, which argued eliminating them could save consumers £165 million yearly.
In light of the situation, Lloyds has allocated a hefty £1.2 billion for possible claims. Santander has set aside £295 million, while Close Brothers has prepared £165 million for the fallout.
The case went to the Supreme Court in early April, with Close Brothers and South African-based FirstRand aiming to overturn the Court of Appeal's ruling that banks cannot lawfully pay a commission to a car dealer without the customer's informed consent.
The Financial Conduct Authority (FCA) has committed to implementing a sector-wide redress scheme within six weeks if the judgment is upheld.
Before the hearing, Shore Capital analyst Gary Greenwood informed City AM that the hearing would "do little to calm investor nerves."
He added: "Consequently, share prices of those companies with exposure to the issue are likely to remain volatile until we have greater certainty on the outcome."
Ford's provision increases the total, which RBC analysts estimate could be over £30 billion if lenders receive an unfavourable ruling.
If the situation worsens, analysts predict Lloyds' total compensation, including interest and administrative costs, could amount to £4.6 billion.
