Lloyds to pay £1.9m to HBOS victims

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

The bank is handling 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 payments if those customers came forward.

A source close to the review said £35,000 is likely to be given to more than 55 individuals because firms have more than one director, meaning there are more impacted individuals than companies.

The bank said seven customers had received final offers as part of the process while eight cases are in the final stages of assessment.

Adrian White, of Lloyds, said: “Since the end of the HBOS Reading fraud trial, we have been working hard to provide fair, swift and appropriate compensation. But, as we have met and spoken with victims, many have asked us for more time.

“We are disappointed that getting to offers is taking longer than we had hoped, but we are committed to doing everything we can to support those affected.”