Lloyds bank has announced that it is to set side more than £350 million pounds to it’s ppi claims provision, because of the announcement by the Financial Conduct Authority that the August 29 2019 time-bar for ppi claims will be extended by two months. It was initially anticipated that the deadline for ppi claims would be made for June 2019.
The addition of another £350 million brings the total that Lloyds has set aside for ppi claims to nearly £17.3 billion. The extra money is supposed to cover the additional number of claims that the bank expects to receive, when the FCA starts the nationwide advertising campaign highlighting ppi claims and the Plevin ruling.
The Plevin ruling is a Supreme Court judgment on PPI complaints handling in November 2014 that extended the definition of mis-selling PPI.
The court agreed that Lloyds’ failure to tell customers it was receiving a large commission for sales was unfair.
To date the high street lender has set aside a total of £17.3billion in compensation since the PPI scandal broke.
The FCA announced this month that some customers will have new grounds to complain if they were not made aware of commission being paid when they were sold PPI.
Compensation will be calculated if more than 50 per cent in commission was paid.
In a statement, Lloyds said: “The additional provision has been taken to reflect the estimated impact of the policy statement including the revised arrangements for Plevin cases, which includes a requirement to proactively contact customers who have previously had their complaints defended, and which is likely to increase estimated volumes and redress.”