Lloyds receive biggest PPI fine ever
Yesterday we brought you news of rumours emanating from the Financial Conduct Authority (FCA) that were suggesting the Lloyds Banking Group were about to be fined £100m for their mis-handling of PPI complaints.
Today we learn that the exact figure of the fine is £117,430,600 !!!
The initial fine was a huge £168m but as Lloyds admitted their guilt they received a 30% discount from the FCA.
The Lloyds Banking Group, which includes the likes of Blackhorse, Halifax, Bank of Scotland, and of course Lloyds, had already set aside £12 BILLION to cover the cost of compensating customers so far, and we expect this figure to continue rising.
What exactly was the fine for?
The FCA investigation into Lloyds found that back in 2012 complaint handlers were advised the Lloyds had basically not mis-sold PPI policies to customers, and to basically reject complaints unless told otherwise.
This frankly abhorrent practise saw approximately 1,200,000 complaints rejected by Lloyds between March 2012 and May 2013.
What will happen with the unfairly rejected claims?
Lloyds have set aside a further £710m by way of compensation for customers affected, and have started a process to contact those affected.
This additional £710m takes their overall PPI bill so far to almost £12.8 BILLION, and the bill for the entire financial sector to £28.6 BILLION.
So, how many chances will Lloyds get to do the right thing?….
Chance 1 – Don’t mis-sell products to your customers in order to generate profit. FAIL
Chance 2 – Handle any complaint fairly and pay compensation where due. FAIL
Chance 3 – Revisit unfairly rejected complaints and rectify the issue. ????!
Would you trust Lloyds to do the right thing?
Previous Lloyds PPI related fines
This isn’t the first time the disgraced bank have been hit with fines surrounding PPI and their target driven sales practises.
In February 2013 the bank were dealt a fine of £4.3m for delays in paying compensation to customers.
In December 2013 the group were issued a fine of £20.7m for continuing to target staff on selling various products and policies to customers, leading to a continued culture of mis-selling.
If we add the total of the fines we reach what initially seems an eye watering £142.4m.
Putting the fines into context
The Lloyds Banking Group account for approximately 40% of the staggering £50 BILLION worth of PPI policies sold.
So, Lloyds have profited by selling £20 BILLION or so worth of PPI policies to its customers, the majority of which were mis-sold.
Lloyds have been fined a total of £142.4m for their cheating and have so far set aside £12.8 BILLION to compensate customers.
Lloyds fine therefore equates to 0.71% of the total amount of policies sold.
It also appears they have benefited to the tune of £7.2 BILLION given they sold £20 BILLION worth of policies and have only set aside £12.8 BILLION to compensate customers.
Is it any wonder the bank continues to cheat and flagrantly break rules set out by the FCA when the risk is outweighed so much by the reward?
Have you had PPI?
PPI was sold on all forms of credit, such as mortgages, loans, car finance, hire purchase agreements, credit cards and store cards.
Not sure whether you’ve been sold PPI?
Our fast and comprehensive checking systems that have been set up with almost all banks allows us to find out whether you’ve been one of the millions who have had PPI.
Not sure whether you qualify? Check here to see whether you may.
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Making a PPI Claim
If you have had a loan, mortgage, or credit card within the last 25 years there’s every chance you’ll have been paying for PPI.
We’ve made claiming easy, taking the stress out of you having to deal with the paperwork, the stress, and the tactics employed by the bank to try and wriggle out of paying.
So….how do you start your claim?
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your PPI claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!