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| Version 1 | Version 2 |
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| Lloyds PPI centre 'encouraged to delay or reject' claims | Lloyds PPI centre 'encouraged to delay or reject' claims |
| (about 1 hour later) | |
| Call centre staff handling thousands of complaints about payment protection insurance sold by Lloyds Banking Group were encouraged to make the process as long as possible and reject compensation claims in the hope customers dropped them. | |
| The discovery was made at handling centre at Royal Mint Court in central London, which came under investigation by Lloyds after "operational issues" were raised several months ago and appeared to spark a row between the bailed out bank and Deloitte, the financial services firms which operated the call centre. Deliotte's contract was terminated last month. Lloyds said the contract had been terminated because of the problems at the centre while Deliotte insisted that it had not been told that this is why the contract had ended. | |
| Lloyds, which is part owned by taxpayers, has already paid out £4.3bn to 1.3 million customers and has set aside a further £2.4bn in future claims after millions were mis-sold payment protection insurance they did not want or need. | Lloyds, which is part owned by taxpayers, has already paid out £4.3bn to 1.3 million customers and has set aside a further £2.4bn in future claims after millions were mis-sold payment protection insurance they did not want or need. |
| Lloyds refused to elaborate further, but an investigation by the Times found trainees were told to turn a blind eye to risks of fraud and that in many cases first time complainants should be rejected because they would be unlikely to pursue the matter to the ombudsman. | Lloyds refused to elaborate further, but an investigation by the Times found trainees were told to turn a blind eye to risks of fraud and that in many cases first time complainants should be rejected because they would be unlikely to pursue the matter to the ombudsman. |
| Royal Mint Court had 1,300 staff to handle complaints but lost its contract with Lloyds last month. The work has now shifted to Huntswood, which is one of two contractors also working for the bank. | Royal Mint Court had 1,300 staff to handle complaints but lost its contract with Lloyds last month. The work has now shifted to Huntswood, which is one of two contractors also working for the bank. |
| The Times claimed executives for recruitment firm Momenta, appointed by Deloitte, told trainees that many loan agreements had been forged, with salesmen ticking PPI boxes on forms without customers' consent. | The Times claimed executives for recruitment firm Momenta, appointed by Deloitte, told trainees that many loan agreements had been forged, with salesmen ticking PPI boxes on forms without customers' consent. |
| However, she added that call centre staff should proceed on the basis that the documents were genuine even if a fraud was likely. | However, she added that call centre staff should proceed on the basis that the documents were genuine even if a fraud was likely. |
| Lloyd's internal manual, The Lighthouse Guide, said "If some or all of the documentation is missing it should not stop you being able to undertake a review." | Lloyd's internal manual, The Lighthouse Guide, said "If some or all of the documentation is missing it should not stop you being able to undertake a review." |
| It added that handlers should work on the assumption that sales processes across the group were "compliant and robust" despite Lloyds admitting to mis-selling products. | It added that handlers should work on the assumption that sales processes across the group were "compliant and robust" despite Lloyds admitting to mis-selling products. |
| A spokesman for Lloyds said: "We continue to review customers' complaints and attempt to resolve them as quickly and fairly as possible. | A spokesman for Lloyds said: "We continue to review customers' complaints and attempt to resolve them as quickly and fairly as possible. |
| "Earlier this year we became aware of issues at a PPI complaints handling centre called Royal Mint Court in central London. This site was operated for us by a third party supplier Deloitte. | "Earlier this year we became aware of issues at a PPI complaints handling centre called Royal Mint Court in central London. This site was operated for us by a third party supplier Deloitte. |
| "Following further investigations we took immediate action, and in May concluded our contract with Deloitte and moved to a new supplier." | "Following further investigations we took immediate action, and in May concluded our contract with Deloitte and moved to a new supplier." |
| Deloitte originally issued a statement, saying: "Deloitte's role was to process PPI mis-selling complaints from Lloyds Banking Group customers who were sold policies by the bank, in accordance with the bank's policies and procedures. We cannot, however, comment upon the specifics of this matter due to reasons of client confidentiality." | |
| But it later elaborated to defend its handling of the process. "In processing claims in accordance with those bank policies and procedures, we provided a high level of service throughout the period. However in May, Lloyds decided to move from three suppliers to two and we received notification of their intention to conclude our contract in May. To our knowledge the conclusion of the contract is unrelated to matters reported in recent press articles," Deliotte said. | But it later elaborated to defend its handling of the process. "In processing claims in accordance with those bank policies and procedures, we provided a high level of service throughout the period. However in May, Lloyds decided to move from three suppliers to two and we received notification of their intention to conclude our contract in May. To our knowledge the conclusion of the contract is unrelated to matters reported in recent press articles," Deliotte said. |
| British banks face an estimated bill of up to £25bn to compensate their customers, with Lloyds becoming the first major bank to agree to settle claims with its customers in 2011. Other banks shortly followed with a Financial Ombudsman Service set up to settle any disputes. | British banks face an estimated bill of up to £25bn to compensate their customers, with Lloyds becoming the first major bank to agree to settle claims with its customers in 2011. Other banks shortly followed with a Financial Ombudsman Service set up to settle any disputes. |
| The City watchdog, the Financial Conduct Authority, is said to be angry with the way some banks have handled complaints and has prepared a report which criticises some practices. | The City watchdog, the Financial Conduct Authority, is said to be angry with the way some banks have handled complaints and has prepared a report which criticises some practices. |