Lloyds Bank has announced that it will add another £350 million pounds to the money it has set aside to compensate people who were mis-sold Payment Protection Insurance, by the bank.
The announcement was made during the bank’s release of it’s 2017 first quarter finances.
The bank said that the additional money it was forced to add to its already PPI claims pile, which totals in the billions was due to fresh cases that the bank was receiving because of Plevin cases.
Another reason for the addition of more funds was the Financial Conduct Authority extended the 2019 PPI claims deadline, from June 2019 to August 2019.
The BBC website reported that:
Lloyds’ statutory profit was boosted by the absence of last year’s £800m charge from its controversial move to buy back expensive bonds from investors.
Mr Augar told the BBC: “This time last year they had to disclose a horrible loss due to volatility in their own bond prices.
“There’s none of that this year, [but] they still had to make another provision for about half a billion pounds for sins of the past, PPI [payment protection insurance] and things like that.”
Lloyds recently set aside an extra £350m to cover mis-sold PPI claims and £100m to cover compensation for victims of fraud by former HBOS staff.
Mr Horta-Osorio said on Thursday that the victims of the fraud would be “fairly, swiftly and appropriately compensated”.