New Report Shows Massive PPI Fine Hasn’t Caused Lloyds to Reform

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New Report Shows Massive PPI Fine Hasn’t Caused Lloyds to Reform

Financial regulators have been scrutinizing Lloyds business practices. The Financial Conduct Authority recently fined the bank £28 million for placing excessive pressure on their salespeople to meet targets. The bank also owes an estimated 8 billion to customers that have already filed or plan to file PPI claims. However, a recent report found that the fine has done very little to change the bank’s coercive managerial practices.

Survey Shows Salespeople Feel Need to Mis-sell Products

The new survey from Only Way is Ethics found that Lloyds staff feel that they are under considerable pressure to meet their targets. Many of them feel that the only way to meet them is to mis-sell products to customers.

The report shows that the employees are living in a culture of intimidation and fear. Salespeople who don’t meet these expectations are often fired, sanctioned or humiliated in front of their peers. Nearly 85% of people surveyed said that they were terrified while working at Lloyds.

One staff member reported that their boss was constantly standing over them and scrutinizing everything they did. They said that they are given almost no flexibility to think and act on their own. This employee said that this level of control has caused them to resent their job and are considering looking for a new employer. Many other employees expressed similar sentiments.

Could this Create a New Mis-selling Scandal?

The payment protection insurance scandal was one of the largest financial crises to hit the country. The pressure on salespeople is one of the reasons that the payment protection insurance scandal erupted over the last decade. The culture of fear will need to be addressed if people want to alleviate these concerns.

However, many banks are still creating these types of cultures. The new Financial Conduct Authority realizes that these types of cultures is one of the biggest problems that needs to be addressed. They plan to take some steps to address it in the future, but haven’t outlined a plan of action yet.

Many people warn that this problem will need to be addressed soon. Many bank employees have already started using unethical strategies to meet quotas while trying to push other financial products.

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.