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Lloyds: We're taking responsibility for our PPI errors

Responding to today's record £117 million fine over its handling of PPI complaints, Lloyds Banking Group said that it takes responsibility for its mistakes and is looking to rebuild trust with customers.

We are trying to get it right for our customers and to rebuild trust. But we do not get everything right.

That means when we make mistakes, we will take responsibility for them.

This is what we have done here.

– Lord Blackwell, chairman of Lloyds Banking Group

The group said it has launched a programme to re-review or automatically uphold around 1.2 million PPI complaints.

It has also set aside £710 million to cover any redress due to affected customers, who are being contacted directly.

The group said that following its review, 90% of customers received payment and the remainder will be completed by the end of June.

Failings that led to Lloyds' record £117m fine

The £117 million fine handed out to Lloyds Banking Group today easily breaks the record for PPI penalties - the previous largest sum being a £21 million fine imposed on Clydesdale Bank two months ago.

Lloyds Banking Group has been fined £117 million Credit: PA

The sum is also the largest ever retail banking penalty imposed by the Financial Conduct Authority.

"As a result of Lloyds' misconduct, a significant number of customer complaints were unfairly rejected," the FCA said.

These are the failings that led to the state-backed bank's record fine:

  • Lloyds Banking Group workers rejected customers’ complaints about missold PPI, citing a "robust" sales process, when in fact, Lloyds was aware of "significant" failures in the sales process and mis-selling
  • Some customers whose PPI complaints had been rejected were told that their grievance had been "fully investigated" with "appropriate weight and balanced consideration [given] to all available evidence," when this was not the case
  • When Lloyds assessed a complaint, the customer's account of what had actually happened at the time of the sale was not always considered in a balanced way
  • Poor contact with customers about their complaint meant that some were not given an opportunity to provide evidence needed to reach a fair outcome

Lloyds fined £117m over handling of PPI complaints

Lloyds Banking Group has been fined £117 million Credit: PA

State-backed Lloyds Banking Group has reached a £117 million settlement with the Financial Conduct Authority over the way it handled complaints about payment protection insurance (PPI).

Lloyds apologised to customers affected and said £2.65 million worth of bonuses was being withheld from executives.

The group, which remains nearly 19% owned by the taxpayer after being rescued during the financial crisis, has already set aside £12 billion to cover the cost of compensating those mis-sold PPI.

The penalty to the FCA relates to the handling of complaints over the scandal during the period of March 2012 to May 2013.

Bank of England holds interest rate at 0.5%

The Bank of England has left interest rates on hold at 0.5%.

The Bank of England Credit: PA Wire

It also left the scale of its money-printing quantitative easing (QE) programme unchanged at £375bn.

The announcement comes after official figures showed Consumer Price Index (CPI) inflation fell to minus 0.1% in April, in line with expectations.

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Average UK house price is now £195,000

Mortgage approvals are also at a 14-month high. Credit: PA

The average UK house price is now £195,166, Nationwide Building Society has reported.

It comes after prices rose 0.3% last month, surpassing an all-time high of £193,048.

Mortgage lenders have been offering some of their lowest ever rates in recent months.

Bank of England figures released yesterday showed the number of mortgages made to home buyers lifted to a 14-month high in April.

What is a 'reasonable' excuse for a late tax return?

HM Revenue and Customs has reportedly waived a £100 fine for people who have a "reasonable" excuse for filing their tax returns late.

Its website states that a reasonable excuse for missing the deadline is "normally something unexpected or outside your control that stopped you meeting a tax obligation" and includes:

  • The recent death of a partner
  • An unexpected stay in hospital
  • Computer failures
  • Service issues with the tax authority's online services
  • A fire which prevented the completion of a tax return
  • Postal delays

Women take 19 years longer than men to earn a million

The wage gap is falling slowly Credit: Owen Humphreys / PA Wire

It takes men until the age of 50 to make their first million on average, according to research - but women have to wait an extra 19 years.

Prudential has found that even though rising incomes mean that women would take nine months less to earn the money than they would have done starting last year, they still lag far behind men in the earning stakes.

The calculations were based on ONS earnings figures, and are calculated on lifetime earnings before tax.

Researchers also found that finance workers take an average of 41 years of work to get a million pounds, while food service workers would need to work until they were 94.

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