Figures emerged, indicating that certain claims management companies have received more than £1.7 billion from Lloyds’ PPI mis selling fiasco. Lloyds said the figure may be accurate because Lloyds was the first bank to set aside money for the payment protection insurance mis selling since 2011.
On Friday, Lloyds added £1.4 billion to its total, which brings its own total to £13.4 billion for the entire payment protection insurance trouble.
Antonio Horta-Osorio had called for a crackdown against claims management companies and have them bear the cost of processing complaints that have no PPI contact attached.
“We have 7000 people processing complaints, yet one-third of the complaints we receive do not have a valid PPI policy behind them,” he said.
“That means a huge cost to us that we would like to avoid; it is very easy for consumers to apply directly to get all the money they are owed instead of paying a third of it to [CMCs].
“In addition, we believe that CMCs that do submit claims that have no PPI policy should bear the cost of processing that claim, otherwise it is always a free option for CMCs, which is neither fair not correct.”
Chancellor George Osborne had announced plans for a review of CMC regulation. It will examine the possible cap on charges that CMCs could charge their clients.