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Lloyds Banking Group has set aside an extra £500 million to cover payment protection insurance (PPI) mis-selling claims, which takes the group’s overall PPI provision to £13.9 billion.
In its financial statement released today, the group, which includes Bank of Scotland, Halifax and Lloyds Bank, says the number of complaints received between the period of July and September were higher than estimated. However it adds that a lower average redress amount has been paid out.
In June the Financial Conduct Authority (FCA) slapped Lloyds with a record £117 million fine for “unacceptable conduct in rejecting PPI claims”, after it found the bank had wrongly rejected many claims.
In total UK banks have set aside more than £28 billion to date to meet compensation claims from borrowers who were mis-sold PPI.
However, the FCA warned earlier this month that it’s considering imposing a deadline on mis-sold PPI claims, giving customers until 2018 to put in a complaint. But don’t wait for this to be confirmed, see MoneySavingExpert.com’s Reclaim PPI for free guide to reclaim now.
Separately, Lloyds Banking Group, also today reported third quarter statutory pre-tax profit of £958 million, up from £751 million in the previous year.