Bank of Ireland sets aside €429m to pay compensation relating to UK motor finance scandal

Bank said it was 'committed to achieving a fair outcome for customers, ensuring appropriate redress is provided where loss has occurred'

Lenders involved in the scandal should expect to pay a combined £7.5bn (€8.64bn) in compensation. Picture: Jason Alden/Bloomberg

Bank of Ireland has set aside €429m for compensation payments relating to the UK’s Financial Conduct Authority’s (FCA) redress programme for consumers who were mis-sold car loans.

On Monday, the FCA published the final details of the redress scheme, which “modestly” tightened the conditions for borrowers to receive compensation, meaning 12.1 million loans are eligible, down from 14.2 million last year.