LONDON (Reuters) – Britain's financial regulator fined Lloyds Banking Group 4.3 million pounds ($6.7 million) on Monday for not paying compensation quickly enough to customers wrongly sold insurance on loans and mortgages.
The Financial Services Authority said that from May 2011 to March 2012, Lloyds did not pay compensation to 140,000 customers mis-sold payment protection insurance (PPI) within a deadline of 28 days after notifying them they were due a payment.
Britain's banks have set aside more than 12 billion pounds to compensate customers wrongly sold policies meant to protect borrowers who lost jobs or became ill, and Lloyds has made a provision of 5.3 billion pounds, the highest of any bank.
But the regulator said nearly a quarter of Lloyds' customers who were entitled to compensation did not receive a payment within 28 days. Around 87,000 had not been compensated within 45 days, with 8,800 having to wait for more than six months.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
