| Banks, Lloyds PPI Claim, PPI

Charges For Misconduct By Lloyds Amount To £2 Billion

Lloyds banking Group have disclosed their total charges for misconduct in the previous year and they amounted to be a whopping £2 billion. Half of this amount is being set aside for the purpose of paying off for the mis-sold buyers’ PPI refund compensation.

When they made a declaration about their annual pre-tax profits, Lloyds, which is the biggest contributor to the PPI compensation since the infamous scandal began, also made a revelation that they also had to set aside a sum of £1.1 billion for their other issues regarding unspecified conduct.

With the total amount of provision roughly amounting to £17.1 already, Lloyds don’t wish to see their bills rise any further. However, similar predictions have been made in the past, but have always resulted in a further increase in the provision amount, such as those encountered in July 2015, February 2016 and the billion pounds announced last year in the month of October.

Chief executive of the bank has been reported to have seen a fall in his pay package due to the increase in the bank’s bills, but he still took home £5.5 million in a time period which also covered the loss of 3,000 jobs elsewhere in the institution. Apart from setting aside money to compensate the mis-sold buyers, Lloyds have also apparently added to their misconduct bill as they failed to deal with the PPI complaints over the last few years.

Lloyds was fined more than £4 million by the Financial Service Authority in the year 2013 for unexpected delays in the process of paying out compensation to the PPI customers.

They were again fined in June 2015 by its successor, Financial Conduct Authority, who charged them a whopping £100 million for mishandling PPI complaints. Lloyds were still being warned as recently as January over ‘serious’ breaches in the transfer of annual PPI statements uncovered by the Competition and Market Authority (CMA).

According to the figures seen in the FCA complaints, Lloyds and Black Horse Limited tend to upheld 78% and 90% of the cases respectively in the ‘General Insurance and Pure Protection’ category in the first half of 2016, as the complaints reached the Ombudsman in the same time-frame they were ruled in favour of the consumer about 78% and 85% of the time respectively.

After all these allegations and ever-increasing complaints regarding PPI, Lloyds have finally decided to set aside a huge amount of money, which would cater to majority of the mis-sold buyers.

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