Lloyds Sets Aside £350m To Cover Further Mis-Sold PPI Claims Before August Deadline

March 13, 2017
by admin in PPI News

The Lloyds Banking Group had added a further £350m to its PPI recompense package in anticipation for a bigger number of PPI complaints before the August 29, 2019. Lloyds said the additional PPI provisions is in anticipation of the number of Plevin cases that could come in the next few days.

According to Lloyds, the new Plevin guidelines requires banks to contact customers who had made an earlier complaint for PPI especially if their financial advisor or bank employee had earned more than 50% in commission without disclosing this information to the customer.

The Plevin guidelines — as defined by the UK Supreme Court siding by Susan Plevin against Paragon Personal Finance — would refund consumers mis-sold PP if the sale representative did not disclose their amount of commission to the consumer before selling them the insurance policy.

The Financial Conduct Authority had announced last March 2 that August 29, 2019 would be the last day for claiming payment protection insurance refunds. Consumer groups expressed their disappointment with many saying banks are still lacking proactivity with contacting consumers possibly mis-sold PPI and a correction overhaul in their system with the FOS still declaring 50% of reviewed complaints in favour of consumers.

Claims management company We Fight Any Claim has filed a judicial review of the Financial Conduct Authority’s actions based on Stephen Knafler QC’s conclusion that the FCA will breach its “responsibility to the public consumer” by siding in favour of banks through a PPI claims deadline.