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Lloyds Set Aside Another £1 billion for PPI Compensation Claims

Payment protection insurance (PPI) is the most mis-sold product in British banking history. It has become a thorn in the fleshy side of the banks and lenders, with customers ensuring that when they claim compensation, they are getting back every penny that they are entitled to.

The banks have had a rough time and with the PPI deadline confirmed by June 2019, it is not going to end any time soon.

This extended compensation deadline has been the catalyst to banks adding more money to their PPI compensation pots.  Lloyds announced an additional £1 billion, with Barclays following suit the next day with an announcement that they too, were adding more money to their compensation fund.

Poor profits

Unlike Barclays, however, Lloyds has not been as fortuitous in terms of maintaining its profits. At the end of September, Lloyds announced a 15% decline in pre-tax profits, racking up only £811 million in profit.

Total income for the bank in the third quarter of the year also fell by 1% to £4.27 billion.

And PPI is not its only problem. There is also an issue relating to how packaged bank accounts were sold. The banking group have set aside £150 million to cover the cost of what is termed as 'conduct issues' in relation the bank account products.

Disappointing results

The profit figures are disappointing for the banking group, 9% of which is owned by the state. The Government were initially to sell of its remaining shares but have now scrapped plans to do so, preferring instead to sell 'tranches' of shares to investment specialists. Possibly, this is needed to shore up the bank and drive it out of the financial quagmire it seems to have found itself in.

Do you have a PPI compensation claim?

Many people bank with banks and lenders who are part of the Lloyds Banking Group. It is the biggest banking group in the UK thus, you could have a claim for PPI compensation against one of its banks or lenders.

You can make the claim direct to them or you can use a specialist claim management company, like Payment Protection Scotland. Many people choose to use a claim management company because it makes their life much simpler - and they hand over all the responsibility of making and chasing the claim to an expert team.

To find out more, call us for a no obligation chat. Better still, we take on all claims on a no win, no fee basis - and that means what it says: you only pay us, if we win your case! Call now.

 

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