STORY: Shares in British lenders surged on Monday after a Supreme Court ruling on motor finance claims last week went largely in their favour.

Although it still left banks facing billions of dollars of potential compensation claims collectively.

Lloyds Banking Group shares jumped 7% in morning trade, on track for its biggest daily gain in three years.

While specialist Close Brothers' stock was up over 20% in early trade.

Barclays, a smaller player in the market, gained 2.3%.

While Bank of Ireland and Santander - both exposed through their UK arms also rose.

Britain's Financial Conduct Authority said on Sunday it would consult on a redress scheme for motorists claiming to have been overcharged.

It estimates the total bill could hit between $12-24 billion.

But that cost is likely to be substantially lower than analysts' early estimates.

It's after the Supreme Court on Friday overturned an earlier Court of Appeal judgment that had widened the scope of valid claims. Related Videos

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Lloyds said on Monday it would keep under review $1.6 billion provision for motor finance claims.

And that any change was "unlikely to be material."

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