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10 Aug 15

Lloyds PPI Bill Jumps Even Further

Lloyds Banking Group has revealed that its total bill for mis-sold payment protection insurance (including Administration costs), will jump a further £1.4 billion as the lender announced additional provisions during the first half of 2015. The figures were released on 31st July as part of the half year results. This brings Lloyds’ total PPI bill (including Administration costs) to £13.4 billion, which is the highest of any British bank. The additional PPI provision is £400 million higher than analysts at Morgan Stanley were expecting, and Lloyds chief executive Antonio Horta-Osorio was frustrated with the scale of the additional redress:

“The additional provision for PPI is disappointing and mostly reflects higher than expected reactive complaints with higher associated redress.”

It has been estimated that Lloyds sold 16 million PPI policies since 2000, and the bank has now contacted, settled or taken provisions for more than 45% of these. Executive Director of consumer body ‘Which?’, Richard Lloyd, was particularly scathing this week in his assessment of the PPI selling scandal:

“This scandal will rumble on for years unless the banks pull their socks up and start making it much quicker and easier for people to get back the money they are rightfully owed.”

Lloyds have said that around two-thirds of the PPI complaints they receive come from claims management companies, such as The Claims Guys.

Sources:

Press Examiner “Lloyds shrugs off PPI charge to report £1bn profit” 03.08.15
http://www.pressexaminer.com/lloyds-shrugs-off-ppi-charge-to-report-1bn-pro5fit/20774

Lloyds Banking Group “2015 Half Year Results” 31.07.15
http://www.lloydsbankinggroup.com/globalassets/documents/investors/2015/2015_lbg_hy_results.pdf

The Guardian 31.07.15
http://www.theguardian.com/business/2015/jul/31/ppi-bill-rises-again-at-lloyds

The Market Mogul “Lloyds: The Never Ending PPI Bill” 03.08.15
http://themarketmogul.com/lloyds-never-ending-ppi-bill/

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