Lloyds Banking Group is once again in hot water as it faces a record £100 million fine from the Financial Conduct Authority for filing to handle PPI claims properly.
The amount adds to the £25 billion to the compensation package and the £12 billion total expenses incurred by Lloyds for payment protection insurance.
Recently, Clydesdale had received the largest PPI claim fine of £20 million. Lloyds’ figure cements its position as one of the biggest sellers of PPI in the United Kingdom.
Meanwhile, PPI numbers may increase once again as a landmark ruling indicated that PPI claims is valid for insurance holders who were mis sold the insurance but found the insurance policy useful if their lender or broker had received a “substantially high” commission for the PPI sale.
The total PPI bill may increase as Credit Rating Agency Standard and Poor’s believe that Lloyds will need to provide £1 billion more to their mis sold PPI pot.
About £35 billion had been spent by banks for financial scandals other than PPI, namely Libor and Forex rigging.