HBOS payouts delay

LLOYDS Banking Group is to shell out at least £1.9m to customers affected by the HBOS fraud scandal as it misses a selfimposed deadline to make compensation offers.

The high Street bank is handing the lion’s share of the victims £35,000 each to help pay for bills and expenses after failing to wrap up the process by the end of June. The lender will make ex gratia payments to 55 of the 67 customers included in the review because it has been unable to track down the other 12.

however, it is understood the bank would still honour the pay- ments if those customers came forward. The bank said seven customers had received final offers as part of the process while eight cases are in the final stages of assessment.

Lloyds, which rescued HBOS at the height of the financial crisis, has set aside a £100m pot for customers affected by the fraud, which took place between 2003 and 2007. The corrupt HBOS reading staff were jailed earlier this year for the £245m loans scam that destroyed several businesses, before they squandered the profits on high- end prostitutes and luxury holidays.