Lloyds bosses to forfeit bonuses over £117m insurance claims fine
LLOYDS has been fined £117m over its handling of Payment Protection Insurance claims – the largest ever handed out by the FCA in relation to PPI.
“Whilst our intentions were right, we made mistakes in our handling of some PPI complaints,” admitted Lloyds chief Antonio Horta-Osorio.
The taxpayer-owned bank was found to have failed in its handling of complaints from customers about the mis-sold insurance between March 2012 and May 2013.
Top bosses at the bank will forfeit a total of £2.65m of bonuses “in recognition of their ultimate responsibility for oversight of the PPI operations”. The bank’s aggregate bonus pool will also be reduced by around £30m.
The FCA found Lloyds unfairly rejected customer claims and did not investigate complaints properly in some cases. During the 14 month period, the bank handled complaints about more than 2.3m PPI policies and rejecting 37 per cent of them.