LONDON (Reuters) – Britain's Lloyds Banking Group said it had ended a contract with Deloitte after problems were uncovered in the way a call centre operated by the business services firm handled customer complaints about mis-sold loan insurance.
The news followed a report by British newspaper The Times, which said it had found contractors employed at Lloyds' largest complaint handling unit were taught how to play the system to the detriment of clients.
Lloyds said on Tuesday it had ended a contract with Deloitte in May after becoming aware of “issues” at the call centre in London, which deals with complaints about the mis-selling of payment protection insurance (PPI) to Lloyds customers.
Lloyds has set aside 6.8 billion pounds ($10.6 billion) to compensate customers mis-sold PPI, more than any other bank, having sold more policies than rivals. PPI policies were meant to protect borrowers against sickness or redundancy but were often sold to customers who didn't want or need them.
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