Lloyds Banking Group, has asked the Financial Conduct Authority (FCA) to set a tighter time-bar for PPI claims, as its bill for mis-selling PPI reaches £13.9billion.
The bailed out bank, now 11% owned by taxpayers, has set aside a further £500million this quarter, taking its total PPI provision to nearly £14billion.
Lloyds finance director, George Culmer, said a proposal by the Financial Conduct Authority to put a 2018 deadline for PPI claims did not go far enough. “We think a shorter time bar … will get people to act more quickly,” said Culmer. “We think two years is excessive,” he said.
As expected, Lloyds has the largest bill for PPI compensation, accounting for nearly half of the total set aside by the major banks. The FCA is now trying to draw a line under this saga by introducing a time-bar for claims to be submitted.
This comes off the back of a recent court ruling where Santander customer, Susan Plevin, received compensation based on the fact the commissions, paid to the seller of the PPI policy, were deemed to be both excessive and undeclared. This on a claim that was previously rejected by the bank.
The ruling means that many other complainants may now be entitled to re-open their cases and demand compensation.
Lloyds also stated that further provisions may be required “if reactive complaint volumes do not decline or the decline is delayed”.