Lloyds has set aside more money for PPI compensation claims
June 2015 and the new from Lloyds Banking Group was a further indication of how deep the payment protection insurance (PPI) mis-selling scandal had fallen. They were fined £117m by the city watchdog for the way that it mid-handled PPI compensation complaints.
Two months previous to this, Clydesdale Bank was a fined a whopping £20.7m after the watchdog found similar failings in the way that it handled complaints from customers seeking compensation of being mis-sold this financial product.
For the Lloyds Banking Group, it is just another notch in a bank that has been besieged by fines and so on, with its misdemeanours finally coming to the fore. In 2014, for example, this banking group, a large portion of which is owned by the tax payer, was fined for attempting to rig the interest rates. This debacle cost them £218m.
This fine is for mis-handling PPI complaints
Between March 2012 and May 2013, there were 2.3 million PPI mis-selling complaints made to banking group but they rejected 3 in 10 if these complaints. The Financial Ombudsman Service, the body that regulates on disputes between customer and their banks, was left to tidy up this mess by revaluating the cases and making a final ruling.
The bank had told their call centre staff that their sale policy at the time PPI was being mis-sold wholesale across the country and to deal with complaints on this basis; in other words, the complaints people made about PPI were told that they claim was not eligible.
Are you affected?
If you did not take your case on to the Financial Ombudsman Service, you may find you are one of the 1.2 million cases that the bank have been instructed to look at again – and adjust them accordingly, contacting customers with the right amount of compensation.
This is welcome news as some people suggested that customer may need to re-submit their cases.
A banking sector in turmoil
The PPI mis-selling scandal has hit all banks hard and it seems that the ever decreasing circles from this saga is rippling through the whole organisation, from top level management to the shop floor.
Many people are still yet to claim PPI compensation but don’t forget, that you could have more than one case too. From credit cards to personal loans, PPI was mis-sold alongside many different products, including store cards and so on.
Check all your paperwork and if you see an insurance that promises to pay your debt if you are unable to, why not call Payment Protection Scotland?