UK’s financial watchdog might slam a £100m ($154m) fine on Lloyds Banking Group for the mishandling of complaints related to the mis-selling of payment protection insurance (PPI).
This is said to be the largest fine that has been imposed by the Financial Conduct Authority (FCA), reported the New York Times.
According to regulatory filings, the FCA inspected the bank’s handling of third-party groups that were hired to deal with complaints from customers who bought Payment Protection Insurance.
The bank is said to have sold around 16 million policies since 2000 and has set aside around £12bn for customer compensation. According to its annual report, it has settled around 45% of its sold policies.
The Clydesdale Bank was also hit by a £20.7m fine by FCA for failing to handle PPI complaints efficiently.
Previously, Lloyds had also been slammed with a £4.3m penalty in 2013 for failing to pay compensation quickly enough to customers who were sold insurance on loans and mortgages.
Meanwhile, the authority is currently looking into whether a final deadline can be set for when customers can seek PPI compensation and its decision is expected by this summer, reported the Wall Street Journal.
Image: Lloyds also faced a £4.3m penalty in 2013 for failing to pay quick compensations to customers who were sold insurance on loans and mortgages. Photo: courtesy of Oosoom.