We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Lloyds fined £4.3mn over PPI claims delay

Bank blamed for delaying 140,000 claims

Article comments

Lloyds Banking Group has been fined £4.3 million by the Financial Services Authority (FSA) for delaying compensation payments to customers over Payment Protection Insurance (PPI) mis-selling.

In a statement on Tuesday, the FSA said failings in the bank's claims processing systems and controls resulted in nearly 140,000 customers experiencing delays in receiving compensation for PPI mis-selling.

The regulatory watchdog said that between May 2011 and March 2012, the bank failed to pay compensation to some customers within the required deadline of 28 days following a decision on payment entitlement.

Giving details the FSA said around 87,000 had not received a payment within 45 days, with 8,800 having to wait over six months. The FSA also found that around 25,000 claims inadvertently "dropped out of the process" and were only identified because customers chased payments.

In response Lloyds claimed it had not anticipated the number of complaints it received and made "administrative errors".

"We acknowledge that this led to some customers not being compensated on time and we apologise to those customers whose payments were delayed," the bank said.


Recommended Articles


Lloyds fined £4.3mn over PPI claims delay

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..

Tesco’s new finance chief starts two months early amid accounting crisis

Marks and Spencer releases Alan Stewart early by to help deal with £250 million hole in Tesco’s accountsmore ..

Microsoft removes Bing image widget after Getty lawsuit

The company is being sued by Getty Images for copyright infringementmore ..

Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *