Lloyds bank payment protection claims bill reaches £13bn!

We all know how big the PPI scandal turned out to be but nobody could of predicted how much the banks would end up shelling out in compensation.

It has just been announced that Lloyds bank has now set aside a further £1.4 billion in compensation to compensate their customers who have been mis-sold payment protection insurance.

BBC News has reported that last year the bank was fined a record £117m by the Financial Authority over the mis-sold PPI. 

The total amount now set aside for the scandal has now reached £13.4 billion. The total includes more than £2 billion in administrative costs with 7,000 staff employed to process complaints. Lloyds has also got to go back over cases it previously rejected.

The FCA found that the bank mishandled complaints between March 2012 and May 2013.

BBCreported: ‘The PPI charge had been widely expected. The three months to the end of June mark the last quarter in which the bank can make set aside PPI compensation against its corporation tax bill. Lloyds called the additional provision for PPI “disappointing”. It said the extra provision reflected “higher than expected reactive complaints with higher associated redress”.’

If you think you have been mis-sold PPI then head over to my PPI claim page.