Accounting for errors...
Lloyds boss admits firm’s fee faults
THE boss of Lloyds Banking Group yesterday said “mistakes will be made” as they took a £1.6billion hit to cover mortgage fee mischarging and PPI.
The bank, who returned to private ownership this year, said they would be paying out £283million to 590,000 of their mortgage customers.
The customers were mistakenly charged unaffordable fees after falling behind on payments between 2009 and 2016.
A spokesperson said the payout, an average of £350 per person, was the result of staff failing to properly assess customers’ circumstances.
It said customer conversations would be “less scripted and more open and flexible” in future. Lloyds will contact customers and repayments will be made by the end of the year.
Lloyds also set aside £700million for PPI claims in the second quarter, taking the bill for the first half to £1billion. And they have made provisions to compensate HBOS customers for the mis-selling of packaged accounts.
“In the retail banking business, mistakes will be made but when they happen we want to do the right thing for our customers,” said chief executive Antonio Horta-Osorio.
Lloyds posted a four per cent rise in first-half profits to £2.54billion.
Challenger bank TSB saw first-half profits climb by £3.3million to £111million.