Recently, disgraced former Lloyds TSB boss Eric Daniels lashed out on consumers and claims management companies for attempting to increase the banks’ PPI compensation package through bogus PPI complaints. Daniels said that half of Lloyds’ PPI complaints were illegitimate, stressing out that most consumers “knew what the product was” and that “PPI was good value for money”.
However, the Financial Ombudsman Service called on the public to treat Daniel’s statements with ‘Cynicism’. The FOS disproves Eric Daniels’ statements as they uphold 3 out of 4 PPI claims rejected by the bank.
Lloyds has over 6,000 representatives handling mis-sold PPI complaints and personnel often report confusion about claimants’ PPI claim letters and the lack of evidences the reasons why the claims are often rejected. Consumer groups and claims management companies advice claimants to find a good PPI template letter in news and media websites and even claims management company websites.
Today, Lloyd’s total PPI compensation provision goes up to £6.3 billion, recently earmarking a £1 billion addition to the PPI package. Lloyd’ compensation total puts it on top of all UK banks’ total for PPI compensation. The bank faces other charges for their other scandals. It recently set aside a £90 million compensation package for mis selling interest rate swap products.