Lloyds Compensation Bill
The real reasons why Lloyds haven’t added to the £9bn+ compensation fund!
Lloyds released their latest figures yesterday and, for the first time in over two years they didn’t add to the pot of PPI compensation.
Many have assumed this spells the beginning of the end for PPI compensation but this isn’t the case in my opinion.
I believe below are the three reasons why they have not added to the pot this time.
1. ALTERNATIVE REDRESS
Lloyds have been caught using loopholes to basically cheat customers out of a fair compensation award.
It’s yet another tactic by the banks not to pay out for their wrongs.
Basically, lenders like Lloyds are offering compensation but withholding some money back by claiming customers were just sold the wrong type of PPI!!
We cannot let them get away with this, and in our experience if this is escalated to the Financial Ombudsman Service banks are giving in and paying the full amount of compensation. Do not let them cheat again.
2. REJECTING VALID COMPLAINTS
A simple look at the Financial Ombudsman Service complaints data shows that many banks and lenders such as Lloyds continue to reject valid complaints.
What’s the reason for this? Simple, most customers who receive a rejection accept it and do not escalate the complaint to the Financial Ombudsman Service.
The Financial Ombudsman will review the complaint and, in most cases, will overturn the rejection and order banks like Lloyds to pay up!
Again, don’t let Lloyds cheat you out of compensation.
3. PEOPLE STILL NOT COMPLAINING
There are still millions of people out there who have been mis-sold PPI but have not yet made their claims.
Many won’t even realise they have had PPI. Many believe “well it can’t have happened to me”.
Payment Protection Insurance was sold on an enormous scale because of the obscene profits lenders made from the product.
All kinds of tactics were used by sales staff who were on generous bonus structures to sell PPI. See my blog to see if you may qualify.
So, will Lloyds pay more into the vast PPI compensation pot in future?
In my opinion it’s inevitable they will pay more into the pot.
Lloyds also released details yesterday that they intend to sell at least 25% of the TSB brand in June so issuing bad news to the city and investors would hardly prove to be a good move.
They need to appear to be over the worst of the PPI scandal.
However, it’s my guess that the pot will increase by at least another £1 BILLION over the next 12 months.
In the meantime, we all need to ensure we are aware of their tactics and not allow them to get away with cheating people further.
It’s time for Lloyds to start paying out what is due and dealing with complaints in a fair manner.
I won’t be holding my breath, but I certainly won’t be allowing them to get away with cheating any of our customers.