UK banks are preparing for potentially massive payouts after a London court ruling criticized them for a lack of transparency in auto loan agreements.

This decision has caused bank shares to plummet, causing concerns throughout the financial sector.

Citigroup Inc. analysts have adjusted their estimates, suggesting that the previous £9 billion ($11.7 billion) charge for the banking sector could potentially double.

The ruling against Close Brothers Group Plc and FirstRand Ltd could establish a precedent that affects broader motor financing practices in Britain, leading to fears of increased financial liabilities for lenders.