Lloyds Banking Group is pulling out of legal action to stop the multi-billion pound payout of payment protection insurance (PPI) compensation to mis-selling victims.
The UK's largest bank has admitted redress is appropriate in many cases, and set aside £3.2 billion today to pay claims, in a huge boost to millions of consumers.
Dan Plant at MoneySavingExpert.com comments, “This is a massive victory and vindication of what consumers, and now the court, have been yelling loudly. Lloyds has finally seen sense, yet as millions of PPI policies have been mis-sold over years, the other massive institutions involved must now follow suit, admit that customers were badly treated and give the billions of pounds back. This is damning evidence that the illegitimate hold placed on claims must stop immediately, and hopefully the FSA will take strong action to make this happen. Anyone who believes they may have been mis-sold a policy should immediately contact the bank, demanding their money back."