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Lloyds Hit Out at PPI ‘Fraud’

Lloyds Bank has hit out at people who try to claim Payment Protection Insurance (PPI) repayments having never been sold the product.

The fraudulent attempts have been blamed on claims management firms by the bank, who say 25% of claims they receive are incorrect and those customers were never sold PPI in the first place.

This statement comes after Lloyds announced they would increase the amount put into handling PPI claims by 12%, rising to £3.6bn.

Last year the PPI provision that Lloyds were forced to set aside meant that the bank made a loss over the course of the year.

However, the bank has announced a pre-tax profit of £288 million for the first quarter of this year.

Appointed in March of 2011, current Lloyds boss Antonio Horta-Osório almost immediately set aside a provision for PPI repayments. Mr Horta-Osório has deemed the PPI saga ‘unacceptable’, and has stated that by rectifying the problem, a change in banking culture can be brought about.

Mr Horta-Osório has also not ruled out putting more money into the fund, saying ‘there is inherent uncertainty in making assumptions and the ultimate financial impact may differ from the amount provided’.

Seemingly then, the focus Lloyds Group has placed on eradicating the dwelling PPI repayment problem may make one think the headlines will stop featuring those particular three letters in conjunction. Time has shown that despite all the positive statements banks have issued with regards to PPI repayment however, that the end may not be nigh. 

By Sean Dudley


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