Early morning, Lloyd Bank, which is 19 per cent owned by the government officials, confirmed that it will pay the financial regulators £117 million i.e. $180 million - to settle an investigation for mishandling Payment Protection Insurance (PPI) complaints.
The firm said that the payment was expected to get settle the Financial Conduct Authority’s probe, and how it mishandled its financial regulators complaints, during the period from March 2012 to May 2013.
The bank said in a statement that the firm regrets for those impact customers that were affected, and accepts that part of its complaint handling process, which led to a failure, providing fair outcomes for a significant number of financial regulators.
However, the FCA has not discovered that the bank group acted intentionally, it has reviewed all the customers’ complaints and fully opposed during the Relevant Period. This review has been completed, and over 90 per cent of financial regulators have received compensations, and the remaining will get paid by the end of June. The compensated cost of reviewing these affected case are not considerably in excess of existing provisions.
Lloyd Bank would be paying about $153 million to settle a PPI probe into its handling complaints. Payment Protection Insurance – a form of insurance provision intended to pay customers in case they have failed to make their payments on their loans.
Many financial regulators were deceived into buying it, but didn’t know how it got worked. PPI was wrongly sold together with credit cards, loans, mortgages, and banks have been forced to pay customers that were wrongly sold the coverage.
And so far, Lloyds has set aside around £12 billion (US$ 18.4 billion) in PPI-related administration charges, and compensation payments.
The PPI mishandling scam has now fined the bank to pay about $40 billion as remuneration amount, as well as admin charges.