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Lloyds Banking Group hit with £4.3 million fine

Lloyds Banking Group hit with £4.3 million fine

Category: Banking

Updated: 19/02/2013
First Published: 19/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

What next?

How to complain to a financial services provider
How to independently claim back mis-sold PPI

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