Lloyds bank has set aside a further £1.4 billion to pay compensation to customers who have been mis-sold Payment Protection Insurance (PPI).
This brings the bank’s total sum reserved for PPI compensation up to £13.4bn – by far the highest for any bank in the UK.
The PPI mis-selling scandal has been estimated at costing British banks a staggering £26bn with an estimated £1.7bn going to claims management companies.
You don’t need to use a claims management company to reclaim mis-sold PPI – you can do it yourself for free.
Huge numbers still to be compensated
Which? executive director Richard Lloyd said: ‘The staggering extra provisions set aside for PPI mis-seling this week, including the whopping £1.4bn from Lloyds, clearly show there’s still a huge number of consumers yet to be compensated.
‘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’re rightfully owed.’
He added that if any bank fails to do this, the regulator must step in.
Lloyds PPI fine
Last month the Financial Conduct Authority (FCA), fined Lloyds £117m over the way it dealt with up to 2.3m PPI claims.
The fine was issued after the FCA found that more than a third of the PPI compensation claims dealt with by the bank had been wrongly rejected.
Lloyds is currently reviewing or automatically upholding around 1.2m PPI complaints. Customer who are affected should have been – or will be – contacted directly by the bank.
PPI compensation review
Earlier this year the FCA said it would be considering whether people can reclaim money if brokers or other intermediaries who sold them policies didn’t make it clear they were earning commission.
The FCA also launched a review in January 2015 looking at the possibility of introducing a time limit on PPI complaints. The FCA is due to announce the results of its review later this summer.