More millions for PPI losses
Lloyds scandal cost hits £19.2billion
LLOYDS Banking Group is braced for hundreds of thousands of fresh complaints during the next year from people who were mis-sold dodgy insurance by the firm.
The Government has set a deadline of next August for victims of the payment protection insurance (PPI) scandal to claim compensation.
And with the deadline nearing, the banking giant was forced to stump up another £550million for compensation in the first six months of the year and admitted it expects to hear from another 13,000 potential claimants per week over the next 12 months.
The banking group’s bill for flogging the useless cover now tops £19.2bn.
Hargreaves Lansdown senior analyst Laith Khalaf said: “The news may flush out some more consumer activity because there’s nothing that stimulates action quite like a deadline. In the short term, that may mean Lloyds has to dip into its pockets again.”
Meanwhile the total compensation bill for UK banks stands at £31.5bn, making it by far the biggest financial scandal to hit Britain.
Lloyds will have breathed a sigh of relief when the Government bowed to pressure from the banking industry and set the deadline for PPI claims.
But despite the latest PPI blow and a £377m restructuring charge to cover worker layoffs and branch closures, Lloyds yesterday posted a 23% hike in group profits to £3.1billion for the six months to June 30.
Boss Antonio Horta-Osorio praised cost-cutting and his own “ambitious strategy to transform the group for continued success in a digital world” for the success.
The bank, whose brands include Halifax, Bank of Scotland and Scottish Widows, continues to axe staff. It recently announced plans to cut 450 mainly back-office roles. More jobs are set to be lost as Lloyds aims to reduce its operating costs to below £8billion in 2020.
■ If you plan to claim compensation for a mis-sold PPI policy you have until August 29, 2019. There is plenty of help online which customers can use to make a claim themselves. If you use a claims management company they will take a slice of your payout.