FCA fine of £117m for Lloyds failures in handling PPI complaints
Just weeks after shares in Lloyds leapt in value after a positive set of results the bank is once again in the news – this time however the shock news is not positive. The Financial Conduct Authority (FCA) has imposed a hefty £117m fine on Lloyds Banking Group for the mishandling of PPI complaints between March 2012 and May 2013.
Lloyds has already set aside £12bn to compensate customers looking to reclaim mis sold PPI even before this latest fine. The fine would represent the fourth largest penalty issued by the FCA in 2015 – its scale reflects the volume of complaints that bank has received.
In a similar move the FCA imposed a fine of £20.7m on Clydesdale Bank after it found serious failings with the consequence that thousands of PPI complaints might have been rejected unfairly. Although PPI mis selling complaints fell to just below 205,000 in 2014 after reaching a record high in 2014 the Financial Ombudsman has predicted that the volumes of entrenched disputes could take years to work through.
Solicitor Paul Cahill commented:
“It hasn’t taken long for Lloyds to once again be under fire for mis sold payment protection insurance. With a provision of £12bn – approximately half of the total £24bn for all major banks it’s always been the case that Lloyds has been at the very heart of the PPI mis selling scandal.
“This latest revelation shows that mis sold PPI complaints continue to dominate the headlines – and there are still significant numbers of people starting to reclaim mis sold PPI. Anyone who hasn’t yet made a claim should take action now.”
Content correct at time of publication