Lloyds Banking Group has reportedly been fined up to £4.3 million by the City watchdog today it was revealed. Approximately 140,000 Lloyds TSB customers have had their payment protection insurance (PPI) compensation payments delayed.
The customers were not paid redress within 28 days of receiving a decision letter and almost 9,000 had to wait more than six months for their compensation, the Financial Services Authority (FSA) said.
The payments were identified as a result of aggrieved customers calling Lloyds chasing payment and media attention highlighting the plight of affected customers.
The failings relate to Lloyds TSB, Lloyds TSB Scotland and Bank of Scotland and resulted in a total fine of £4.3 million.