Lloyds Banking Group reveals that it has withdrawn from the legal dispute with the Financial Services Authority over payment protection insurance (PPI) and has set aside £3.2 billion to repay customers who were mis-sold to.
Richard Lloyd of Which? says, "This is great news for the millions of Lloyds customers who have been mis-sold PPI. It is refreshing to see a bank break ranks from its peers and do the right thing by its customers. The rest of the UK’s banks must now follow suit and draw a line under the great PPI mis-selling scandal by withdrawing their legal challenge to the FSA and proactively reimbursing the millions of customers who were mis-sold PPI. This should serve as a wake-up call banks that treating customers fairly cannot be ignored. Instead of trying to claw back these losses from its customers, Lloyds should instead look at the bonuses of the senior managers who presided over this systemic mis-selling.”