A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Thursday, May 05, 2011

Lloyds to pay £3.2bn for mis-selling PPI policies

3:29 pm  Arden Forester  3 comments

Bank trainee?
Lloyds Banking Group has set aside £3.2bn to pay compensation to customers who were mis-sold payment protection insurance (PPI). This decision follows a high court ruling over the scandal. The bank is inviting past purchasers of PPI to get in contact and lodge a claim for compensation if they think they were mis-sold the policies. Well, that will be a deluge because whichever way you look at it people either got a policy that was never likely to pay out or they were forced to have the policy in order to get the loan.

PPI policies are supposed to cover loan repayments if someone falls ill, has an accident or loses their job. The huge bill has pushed Lloyds into the red to the tune of £3.47 billion. Shareholders be warned. Taxpayers look out!

Angela Knight of the British Bankers' Association will be miffed to highest miffery. But she's been overseeing this bunch of legalised cowboys since she lost her seat in parliament in 1997 and saw the light touch of Gordon Brown and Tony Blair descend upon the profession of banking. Not much said whilst New Labour set about new banking.

Lloyds chief executive Antonio Horta-Osorio has basically stuffed the BBA's case. "We will no longer be participating in the BBA's judicial review," he said. "We do not want to continue a long-standing debate of this with the regulator."

Long-standing debate? This is no debate. He and his cronies have been engaged in a despicable money-making scam designed to maximise profits whilst leaving customers with a product that singularly failed to meet expectations.

We should have let the whole stinking ship sink whilst we had a chance. Even paying compensation to savers would have been better than see this black horse limp towards the knackers yard.

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3 comments:

Mr. Tappin is leaving the UK wearing an orange jumpsuit and handcuffs. Get the humiliation in early, won't you. He denies all wrongdoing. But because of the draconian penalties for this charge - basically the prospect of dying in jail - he will no doubt be urged to plea bargain with some upstart public prosecutor. Quite wrong.

Lloyds chief executive Antonio Horta-Osorio has basically stuffed the BBA's case. "We will no longer be participating in the BBA's judicial review," he said. "We do not want to continue a long-standing debate of this with the regulator."

Anybody who has been mis-sold a PPI would be well advised to keep away from anyone suggesting they can assist in securing large amounts of compensation. Simple message is do it yourself without an intermediary!

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