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Archive for tag: Lloyds Banking Group

Lloyds Banking Group Set Aside More Money for PPI Claims

2014 has not seen a great start for the beleaguered Lloyds Banking Group, and it is the same problem that keep rearing its ugly head. A problem that all banks and lenders wish would simply fizzle away is the continuing saga of payment protection insurance (PPI) insurance.

But for some banks, it is more of a problem than just simply watching their profits dwindle away. For the Lloyds Banking Group, for example, it is about their future and the shape of it.

Forced to put aside another £1.8 billion in order that customers can be compensated, Lloyds must be ruing the day that the whole 'pay back PPI premiums to customers' saga started. This additional money in the PPI compensation pot brings Lloyds' current total to £9.8 billion, bad news for a bank with 33% of it owned by the UK Government.

With Lloyds boasting the highest PPI compensation pot than all the other UK banks, it is contributing a huge amount to the collective pot that is now well on its way to £20 billion of money refunded to customers who were wrongly sold PPI on loans and other products.

But they are not the only bank; only a few months previous, the Royal Bank of Scotland (RBS) announced it was facing a loss of £8 billion, after setting aside another £3.1 billion to cover the costs of PPI compensation, as well as other litigation issues the bank are facing.

But, behind all this mis-selling must surely be high-ranking personnel who either sanctioned or turned a blind eye to the PPI mis-selling. It was announced back in February 2012 that five personnel at Lloyds' were stripped of their huge bonuses for the parts they played in the mis-selling debacle, a move applauded by many but seen as 'too little, too late' by the thousands of people out of pocket as a result of the PPI scandal.

With other accusations of mis-selling of other high earning products, banks are set to take another battering for theirless-than-scrupulous selling acts. Despite all this, the Lloyds Banking Group, which the Chancellor intends to sell before the 2015 General Election, say they are on course to make a small profit this year.

If you believe you have been mis-sold payment protection insurance on your loan by Lloyds Banking Group or any other UK bank, lender or building society, Payment Protection Scotland can help.

We have already helped thousands of people to successfully claim back compensation as a result of being mis-sold PPI. Why not contact Payment Protection Scotland to find out more?