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You can find the current article at its original source at https://www.theguardian.com/money/2019/jul/31/lloyds-puts-cash-aside-to-cover-rush-in-ppi-mis-selling-claims
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| Late rush in PPI mis-selling claims pushes Lloyds' bill past £20bn | Late rush in PPI mis-selling claims pushes Lloyds' bill past £20bn |
| (17 days later) | |
| Lloyds Banking Group has put aside more cash to cover a late rush in customers claiming they were mis-sold payment protection insurance, bringing its total bill for the scandal to more than £20bn. | Lloyds Banking Group has put aside more cash to cover a late rush in customers claiming they were mis-sold payment protection insurance, bringing its total bill for the scandal to more than £20bn. |
| The lender took another £550m in PPI charges in the second quarter after a “significant increase” in customers requesting information from the bank in the run-up to the 29 August claims deadline. Lloyds said the queries would lead to a rise in the number of complaints and administrative costs. | The lender took another £550m in PPI charges in the second quarter after a “significant increase” in customers requesting information from the bank in the run-up to the 29 August claims deadline. Lloyds said the queries would lead to a rise in the number of complaints and administrative costs. |
| The provision pushed down pre-tax profits by 7% to £2.9bn for the six months to the end of June, disappointing analysts, who had been expecting a figure of more than £3bn. PPI provisions for the first half were £650m. | The provision pushed down pre-tax profits by 7% to £2.9bn for the six months to the end of June, disappointing analysts, who had been expecting a figure of more than £3bn. PPI provisions for the first half were £650m. |
| Lloyds said the total number of complaints it could receive was still unclear. However, it has a war chest of about £1.1bn in reserve to deal with a further rise in claims. | Lloyds said the total number of complaints it could receive was still unclear. However, it has a war chest of about £1.1bn in reserve to deal with a further rise in claims. |
| While Lloyds has historically fielded about 70,000 PPI information requests per week, that number more than doubled to 150,000 throughout the second quarter and reached 190,000 in recent weeks. It expects queries to stay at that level until the end of August. | While Lloyds has historically fielded about 70,000 PPI information requests per week, that number more than doubled to 150,000 throughout the second quarter and reached 190,000 in recent weeks. It expects queries to stay at that level until the end of August. |
| The lender, which started taking claims in 2011, has racked up by far the largest PPI compensation bill of all the banks for what has become the UK’s largest mis-selling scandal. | The lender, which started taking claims in 2011, has racked up by far the largest PPI compensation bill of all the banks for what has become the UK’s largest mis-selling scandal. |
| Its £20bn bill is more than double the second-highest total, at Barclays, which has put aside £9.6bn so far. Lloyds also accounts for half of the £40.9bn total put aside by the five major high street banks to date. | Its £20bn bill is more than double the second-highest total, at Barclays, which has put aside £9.6bn so far. Lloyds also accounts for half of the £40.9bn total put aside by the five major high street banks to date. |
| The Lloyds chief executive, António Horta-Osório, said the rising PPI bill was disappointing. Markets also reacted poorly to the news, which sent the Lloyds share price down over 4% to 52.5p. | The Lloyds chief executive, António Horta-Osório, said the rising PPI bill was disappointing. Markets also reacted poorly to the news, which sent the Lloyds share price down over 4% to 52.5p. |
| Horta-Osório said Lloyds was also keeping an eye on the impact of Brexit. He noted a drop in business investment and hiring plans across the UK in the second quarter but said he was optimistic, given Britain’s high levels of employment and the rise in real wages. | Horta-Osório said Lloyds was also keeping an eye on the impact of Brexit. He noted a drop in business investment and hiring plans across the UK in the second quarter but said he was optimistic, given Britain’s high levels of employment and the rise in real wages. |
| Lloyds said it was “proactively” monitoring Brexit developments, adding that that “various initiatives are in place” to safeguard against the risks of a no-deal Brexit, particularly for its commercial loans division. | Lloyds said it was “proactively” monitoring Brexit developments, adding that that “various initiatives are in place” to safeguard against the risks of a no-deal Brexit, particularly for its commercial loans division. |
| The bank is still expecting an “orderly withdrawal” from the EU, despite the pledge by Boris Johnson, the prime minister, to take the UK out of the bloc with or without a deal on 31 October. | The bank is still expecting an “orderly withdrawal” from the EU, despite the pledge by Boris Johnson, the prime minister, to take the UK out of the bloc with or without a deal on 31 October. |
| Horta-Osório said: “The group has continued to make strong strategic progress during the first half of 2019 and delivered a good financial performance with market-leading efficiency and returns. The economy has remained resilient, although economic uncertainty has led to some softening in business confidence as well as in international economic indicators. | Horta-Osório said: “The group has continued to make strong strategic progress during the first half of 2019 and delivered a good financial performance with market-leading efficiency and returns. The economy has remained resilient, although economic uncertainty has led to some softening in business confidence as well as in international economic indicators. |
| “In this environment our strategy continues to be the right one and we are well placed to support our customers and continue to help Britain prosper.” | “In this environment our strategy continues to be the right one and we are well placed to support our customers and continue to help Britain prosper.” |
| The bank put aside an additional £143m to cover legal disputes and other regulatory issues over the first half of the year. Lloyds’ chief financial officer, George Culmer, said it had already put aside cash to cover a recent settlement with the former Deal or No Deal presenter Noel Edmonds. | The bank put aside an additional £143m to cover legal disputes and other regulatory issues over the first half of the year. Lloyds’ chief financial officer, George Culmer, said it had already put aside cash to cover a recent settlement with the former Deal or No Deal presenter Noel Edmonds. |
| Edmonds has been in a years-long battle with Lloyds over claims that his firm Unique Group was pushed into failure by fraudsters at the Reading branch of HBOS, which Lloyds acquired at the height of the financial crisis. He was believed to be seeking as much as £60m in damages. | Edmonds has been in a years-long battle with Lloyds over claims that his firm Unique Group was pushed into failure by fraudsters at the Reading branch of HBOS, which Lloyds acquired at the height of the financial crisis. He was believed to be seeking as much as £60m in damages. |
| While Lloyds declined to confirm the total financial settlement with the TV celebrity, the Guardian understands Edmonds received about £5m. | While Lloyds declined to confirm the total financial settlement with the TV celebrity, the Guardian understands Edmonds received about £5m. |
| Edmonds could not be reached for comment. | Edmonds could not be reached for comment. |
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