Delays with redressing customers for mis-sold payment protection insurance (PPI) has resulted in Lloyds Banking Group (LBG) being fined £4.3 million by the Financial Services Authority (FSA).
The regulator found that Lloyds TSB Bank Plc, Lloyds TSB Scotland Plc and Bank of Scotland plc had failed to issue redress payments to around 140,000 customers within the stipulated 28 day timescale.
System and control failures meant that at least 87,000 customers had to wait more than 45 days before receiving redress, whilst 8,800 received nothing for six months.
In a large number of cases, LBG was unable to provide assistance or fast-track payments to customers who had called the bank to chase their redress.
Director of enforcement and financial crime at the FSA, Tracey McDermott, said: "In short, LBG's redress payment systems fell well below the standard the FSA expects, and the size of this fine reflects how seriously we view these breaches.
"All regulated firms must treat those who complain fairly and that includes paying redress promptly when it is due," she concluded.
How to complain to a financial services provider How to independently claim back mis-sold PPI
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.