Earlier Deadline Demanded By Lloyds Over Payment Protection Insurance
The Lloyds Banking Group, disappointed by the performance of the bank by allocating £1bn more to its payment protection insurance total bill, will lobby against the Financial Conduct Authority to set a payment protection insurance claims deadline at an earlier date.
Lloyds reported a 33 per cent profit increase at £2.1bn only to lose half the amount to PPI refunds.
The bank said setting an earlier deadline will encourage UK consumers to act quickly. According to Lloyds Finance Director George Culmer, two years is excessive.
The Biggest Mis-Sold PPI Sinner
Lloyds is the biggest mis-seller of PPI in the country with over £14bn in total refunded to consumers. The mis-sold PPI total bill, now at £27bn, has Lloyds answer half the price for the industry’s misgivings.
Lloyds had said it could take higher numbers of PPI provisions if volumes do not decline or the decline is delayed.
The Financial Conduct Authority has begun consulting for a PPI claims deadline. It is also consulting to give guidance regarding the Susan Plevin v. Paragon Personal Finance Ruling and its inclusion into the PPI rules.
The FCA believes setting a deadline, coupled with a consumer awareness campaign, will encourage all UK consumers “slacking off” to create payment protection insurance claims as soon as possible.