Lloyds fined £4.3m for five major PPI failings

The Financial Services Authority (FSA) has fined three Lloyds Banking Group firms a total of £4.3m for failings that resulted in up to 140,000 customers receiving delayed payment protection insurance (PPI) redress.

The three firms are Lloyds TSB Bank, Lloyds TSB Scotland and Bank of Scotland. Between May 2011 and March 2012, LBG sent more than 580,000 decision letters to PPI complainants agreeing to pay redress to them. FSA rules state that redress must be paid promptly and, in line with that, LBG aimed to make payment within 28 days. However, a series of failures meant that not all customers were paid redress within that time frame. While up to 140,209 customers - nearly a quarter - received payment after 28 days, about 87,000 had to wait more than 45 days. Some 56,000 had to wait more...