Lloyds Provisions Tops £13.4 Billion
Lloyds Bank has been forced to set aside a further £1.4 billion for PPI, after further underestimating the claims made by customers and claims companies in the middle of banking world.
This take the overall provision to £13.4 billion, although it has been suggested that a further £3 billion will need to added in the next 18 months if PPI complaints don’t slow down significantly.
Lloyds banking group is responsible for nearly half of all the PPI complaints, due to its significantly large contribution in the mis-selling scandal.
Lloyds claim that whilst the volume of complaints fell by 8% from this time last year, they were not falling as quickly as expected. Most of these complaints were driven by claims management companies.
Lloyds has just been hit with a record £117m for its misconduct selling PPI, which dates back to the mid-1990’s. However this hasn’t stopped Lloyds dragging their feet in a good deal of cases, with 93% of all rejected claims held up by the Ombudsman service.
It is not just the selling of PPI that has gotten Lloyds into hot water, the mis-selling of packaged bank accounts is expected to cost Lloyds a further £175 million in compensation.