LONDON (Reuters) - Lloyds Banking Group took another 1 billion pound ($1.6 billion) hit to compensate customers mis-sold loan insurance, taking its charge for the scandal to 5.3 billion and dragging it to a third-quarter loss.
Britain's biggest retail bank had already set aside 4.3 billion pounds to repay customers wrongly sold payment protection insurance (PPI), far higher than rivals as it had the biggest share of the market for PPI products - w hi ch have become one of Britain's biggest consumer finance scandals.
Lloyds, which blames claims management companies (CMCs) for exacerbating the problem by submitting false claims, said it had paid out or spent 3.7 billion pounds on the issue by the end of September, or 70 percent of its previous provisions.
Like other British banks, Lloyds faces multi-billion pound losses to cover wrongly sold insurance on mortgages and other loans, often to people whose circumstances meant they were barred from making claims.
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