FCA Set to Charge Lloyds £100 million PPI Fine

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FCA Set to Charge Lloyds £100 million PPI Fine

The wheels have been set in motion for potentially the biggest ever fine handed out by the City’s financial watchdog for PPI related failings. Over one hundred million pounds is the figure that is rumoured; with the exact amount likely to be officially announced on Friday, according to Sky news.

This new fine comes only weeks after the Financial Conduct Authority (FCA) handed out a £20.7m fine to the Clydesdale Bank for similar reasons.

Being the UK’s largest high street lender, Lloyds also has been the worst hit by the aftermath of the on-going Payment Protection Insurance (PPI) claims scandal. They sold the most PPI products – the very ones that were unsuitable and mis-sold widely and systematically, and they are now again found guilty, like many of their lending counterparts, of not handling customer’s complaints and compensation claims correctly.

Although there aren’t the same allegations of falsifying documents to avoid or delay PPI compensation payouts to customers as with Clydesdale, there is large scale mishandling of customer complaints at the root of the fine Lloyds face.

The Lloyds Banking Group had already put aside over £12 billion to pay back the compensation claims customers make for mis-sold PPI, though many find the route to compensation not nearly so clear cut or straight forward as it should be. Over £17 billion has been paid out collectively by the UK’s banks and lenders for the PPI mis-selling, though there are still billions that have been put aside that have yet still to be claimed back by PPI customers- many who do not even know that they ever had been paying for a PPI policy.

It is this on-going flood of PPI customers seeking compensation that is leading to the banks again pushing for a deadline for all claims to be in by – it will bring an end to the PPI saga and let the whole scandal be put in the past. Customers and the FCA who fight on their behalf, however, are not so keen to let the banks and lenders off so lightly.

COVID-19 ANNOUNCEMENT

MARCH 23RD 2020

At this time we are continuing business as usual however our team will now largely be working from home. This limits our phone contact availability. Customer support remains available Monday to Friday but please email in to info@oraclelegal.com with your query. We aim to get back to you within 48 hours. On receipt of PPI refunds our fees remain payable and can be paid via our website www.oraclelegal.co.uk/payments/ or via BACS. We are also working on some other areas of potential claim for you in connection with your PPI and will be in touch shortly where applicable to present this to you.

IMPORTANT:The last day we can accept a new claim is Friday 23rd August – midday – to ensure the paperwork is properly processed and lodged with your lender before the cut-off time.