Lloyds Banking Group shocked its investors after unveiling in its half-year performance report that it is only halfway in resolving its 16 million potential mis-sold PPI complaints in the last decade. The bank has the highest allocation for mis-selling, accounting for half of the £30bn industry total.
Lloyds estimates it has resolved 50% of its insurance mis-selling issues. The bank had sold 16 million policies from the year 2000. Analysts believe that Lloyds is likely to increase its bill in the next year, a possible last allocation aside from the £700m it added to its refund package this year.
HSBC had added £200m to its £4.9bn total refund package for mis-sold policies. According to the bank, the announcement of a claims deadline had increased consumer awareness, which is expected to increase further after the FCA launches its £4.2m advertising campaign to televisions and the Internet.
The FCA’s deadline for policy claims was not met happily by consumer groups and claims agencies. Claims management company We Fight Any Claim vowed to raise awareness about the FCA’s failure to protect consumers from unfair organisations. The CMC lost its first legal bout with the FCA, but it promises to continue its fight to raise awareness regarding PPI and the FCA’s activities.