Lloyds to miss payout date

Lloyds Banking Group is on course to miss a selfimposed June deadline to make compensation offers to victims of the HBOS fraud scandal.

Earlier this year, the Bank of Scotland owner pledged to table compensation proposals by the end of this month.

One reason for the hold-up is due to customers taking longer than expected to provide their input to the bank, a source said yesterday.

Lloyds, which rescued HBOS at the height of the financial crisis, has set aside a £100million pot for the 64 customers affected by the fraud, which took place between 2003 and 2007 at the hands of former HBOS Reading staff.

The corrupt financiers were jailed earlier this year for the £245million loans scam that destroyed several businesses, before they squandered the profits on high-end prostitutes and luxury holidays.

Victims have been asked for detailed input into the review, not only covering the economic losses they have suffered, but also highlighting indirect losses such as legal fees and other personal costs.

Lloyds would not disclose how many compensation offers have been made, but it has now emerged that only one victim has received compensation so far.

Among the victims is former Deal Or No Deal host Noel Edmonds, who launched a £50million-plus compensation claim against the lender in May.

Mr Edmonds has accused Lloyds of “foot dragging” over compensation payouts to fraud victims, and said he came close to taking his own life after the financial fraud helped destroy his former business, Unique Group.

“Only one victim has received compensation so far”