Lloyds Bank has announced that it has set aside a further £750m for anticipated claims for mis-sold payment protection insurance (PPI) by consumers.
The part state-owned bank, which was bailed out back in 2008 after the financial meltdown, has said that it has set the sum aside to contribute to the bill for the scandal.
This takes the total Lloyds bill to around £8 billion, the largest contributor, with the total bill among all banks at £16 billion. A study carried out back in August by consumer group Which? suggested that the total cost of the PPI scandal is double the amount it cost to stage the 2012 London Olympics.
Lloyds also admitted “issues” with the way some of its employees handled PPI complaints. A Times investigation found that call centre staff at Royal Mint Court in central London were “[playing] the system” so that claimants did not receive compensation for wrongly sold PPI.
The bank hit troubles back in 2008 at the height of the financial meltdown, leading to a £20billion government bailout.
The Treasury recently sold 6% of its share in Lloyds off to private investors, bringing in £61m profit for the taxpayer, but the government still owns around a third of the bank. This decision was criticised by some, including Lawrence Tomlinson, entrepreneur-in-residence at the Department for Business, Innovation and Skills (BIS), who said, “What if, a number of years down the line, the share price increases six-fold? Wouldn’t it be good to keep that as a national asset instead of palming it off to private ownership too early, having absorbed all the risk and taken none of the return?”
To the end of September 2013, the bank saw profits of £1.52 billion, almost double the figure for the same period of 2012.
Like our Facebook Page
Can You Maximize Your Profits While Investing Ethically?
Environmental Benefits of Living in Miami. Why Is It Worth Moving There?
5 Ways To Shift To Green Energy At Home
Advantages of Free-Range Farming for Eco-Friendly Consumers
What is Eco-Friendly Investing and How Can You Embrace It?
Green Software Ideas to Implement with an Offshore Development Team
5 Things Eco-Conscious Consumers Should Know About Private Wells
The True Environmental and Social Costs of Mined Diamonds
20 Incredible Facts Eco-Tourists Should Know About Dubai
5 Massive Benefits of Turning to Renewable Energy
6 Tips For Getting the Most from a Solar-Powered Home
7 Excellent Ways to Live a Greener Lifestyle in 2021
How the Property Industry Is Embracing Eco-Friendliness Across the Board
Sustainability in Construction: Methods to Mitigate Environmental Impacts
New Company is Driving ESG Infrastructure Development in Mining
10 Tips to Turn Your Next Holiday into an Eco-Friendly Celebration
4 Benefits of Commuting with a Bicycle as an Eco-Friendly Consumer
Some Important Facts about Eco-Friendly Glass Railings
Impact Proof of Stake Ethereum Mining on Power Industry Sustainability
7 Business Survival Guidelines All Eco-Friendly Entrepreneurs Must Follow
- Features12 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features10 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Energy6 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features5 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home