Lloyds PPI bill rises by a further £600 million

Lloyds Banking Group, which includes the likes of Lloyds, Halifax, Bank of Scotland and Black Horse to name a few, has today issued it’s most recent figures. The bank, part owned by the UK taxpayer following a rescue package by the government, has today revealed that the biggest financial scandal to hit the UK, the mis-selling of Payment Protection Insurance (PPI), is far from over.

Previous figures

You may recall that in Lloyds’ previous figures released to the city, it did not make any additions to it’s already staggering PPI compensation pot. This prompted analysts and so called experts to suggest this marked the beginning of the end of the PPI scandal. I suggested in my blog at the time that Lloyds were in the process of selling a 25% stake in TSB and that any bad news would affect the share price and therefore lead to losses for the bank.

I also suggested at the time that the Lloyds PPI bill will rise by over a billion over the course of the next 12 months. Three months later and they’ve added £600m to their compensation fund, so my prediction currently looks very much on course.

Total PPI bill

With RBS/Natwest and Barclays having already released their figures over the last week, with RBS adding £150m and Barclays topping up their compensation pot by £900m it’s clear that the scandal still has a long way to go before it’s over.

Unfortunately, whatever happens from now on, the banks will have profited more from selling PPI than they will ever pay back, given the compensation pot stands just over £23 billion, in contrast to the £50 billion worth of PPI policies sold. However, with an estimated 7 million people yet to make a claim, most of whom won’t be aware they’ve been sold a policy such were the tactics employed by lenders, I urge you to check your paperwork if you have it, or contact Your Money Claim who can carry out the necessary checks and work the claim on your behalf in order to recover the compensation you deserve.

Lloyds PPI bill