3rd February 2014
The extra provision for the fourth quarter of 2013 more than doubles the charge for last year to £3.05bn, resulting in a total bill of £9.825bn. The bank revealed the figures in a surprise trading update less than two weeks before its annual results announcement.
George Culmer, Lloyds' finance director, said predicting the cost of PPI was "fiendishly hard" but that the bank thought it had got the numbers right this time.
"It's a big number and it's obviously disappointing. There are always risks but we think it's appropriate."
The PPI scandal has dogged Britain's banks for years. The banks sold insurance to customers to protect loan repayments if they were ill or unemployed but in many cases the policies did not pay out or were not needed in the first place.
Lloyds said complaints fell towards the end of 2013 but that it no longer expects them to drop off as quickly as before. Its new forecast assumes another 550,000 complaints.
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Source: The Guardian
Posted in PPI, Lloyds Banking Group, Mis-selling, Compensation, PPI Scandal