Lloyds Banking Group announced on Monday that it will take an additional charge of £800 million ($1.07 billion) related to the UK motor finance mis-selling scandal, raising its total provision to £1.95 billion. The move follows new guidance from the Financial Conduct Authority (FCA), which expanded the scope of potentially affected cases.

The FCA’s proposed redress scheme indicates that more historical cases, dating back as far as 2007, may now be eligible for compensation. Lloyds, which had previously set aside about £1.15 billion for the issue, said the regulator’s approach to calculating redress is “less closely linked to actual customer loss than previously anticipated,” suggesting overall payouts could exceed earlier estimates.

The mis-selling scandal has sent ripples through the UK banking sector, with the FCA estimating total industry compensation costs between £8.2 billion and £9.7 billion. Lloyds’ increased charge underscores the growing financial impact of the regulator’s intervention, as banks prepare to compensate consumers affected by improper motor finance practices.

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