Lloyds to set aside £450m more to pay PPI victims

ANOTHER £450m could be set aside by Lloyds to compensate victims of the PPI misselling scandal.

The extra cash, expected to be announced in the banking group’s annual results next week, will take the total bill to around £18.5bn and mark the 18th time more money has been made available.

Credit card customers who were sold worthless payment protection insurance must submit a claim before August 2019, and this is a final push encouraging anyone who has not done so to take action.

It is likely to have triggered a pick-up in claims for all the major lenders – although banking insiders say that a short-term spike in costs is better than the saga dragging on for ever without a deadline.

Analysts at Morgan Stanley said they expect a £450m PPI bill for Lloyds in results on Wednesday. They are anticipating 15,000 claims a week before the cut-off point.

The bank, which is preparing to unveil its strategy for the next three years, has only set aside enough cash for 9,000, and analysts expect it will have to put away another £1.8bn in total to meet demand for compensation. The strategy is widely expected to involve a push into the wealth, investment and pensions markets.