19 February 2013
Lloyds Banking Group, which is partly owned by the taxpayer, was today fined £4.2 million by the City regulator for failing to pay tens of thousands of customers compensation in time.
The Financial Services Authority found that over an 11-month period Lloyds failed to send compensation to more than 140,000 customers who had been mis-sold payment protection insurance within its promised 28 days. Some had to wait for more than six months for their payment.
Lloyds has had to set aside
£5.3 billion to cover handling and paying compensation for PPI mis-selling.
The taxpayer owns 39 per cent of Lloyds after it and HBOS’s £20 billion bail-out in 2008.
