Lloyds Banking Group faces another £350 million bill to settle Payment Protection Insurance (PPI) bills from mis-selling insurance on loans to its customers in the past. The company already had the largest bill for the PPI scandal, and their total costs will now be over £17 billion.
The Telegraph reports –
“The lender made the extra PPI provision after the City watchdog earlier this month set an August 2019 deadline for filing claims against banks, which was two months later than originally proposed, and announced it would push firms to contact potential victims of the scandal. It takes Lloyds’s total hit for PPI to almost £17.4bn, the single largest bill for mis-selling the insurance of any lender… The PPI scandal has dogged the industry, and Lloyds in particular, for years but there were hopes the shadow it had cast was starting to recede… However, the Financial Conduct Authority’s (FCA) decision to move the so-called timebar for claims from June 2019 to August 2019 and the ramifications of a PPI legal battle – the Plevin case – have forced Lloyds to make this new provision.”