Posted on: 25th March 2014 7:40am
Lloyds Banking Group is reducing the amount of compensation it pays to claimants mis-sold payment protection policies through a legal loophole called alternative redress. The saving for Lloyds using this method is estimated at £60m. Lloyds have set aside a further £1.8 billion to use in compensations claims for mis-selling payment protection insurance. This additional fund will bring the total bill for Lloyds PPI claims to £9.8 billion. Despite this significantly increase in the Lloyds' PPI bill it is expected to return a £6.2 billion profit this year. The total PPI bill for all banks is said to be in the region of £20 billion according to the Financial Conduct Authority.