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Lloyds PPI centre 'encouraged to delay or reject' claims Lloyds PPI claimants urged to resubmit applications after call centre scandal
(35 minutes later)
Lloyds Banking Group customers who had claims over payment protection insurance rejected have been urged by campaigners to resubmit them after an investigation found call centre staff were encouraged to make the process as long as possible and reject compensation claims in the hope customers would drop them. Lloyds Banking Group customers who had payment protection insurance (PPI) claims rejected have been urged to resubmit them after an investigation found call centre staff were encouraged to delay and deny compensation requests in the hope they would be dropped.
The discovery was made at handling centre at Royal Mint Court in central London and sparked a row between the 39%-taxpayer owned bank and Deloitte, the financial services firm that operated the call centre. The discovery was made at a handling centre in central London and sparked a row between the 39%-taxpayer-owned bank and Deloitte, the financial services firm that operated the call centre.
Deloitte's contract was terminated last month. Lloyds said this was because of the problems at the centre, which were identified after "operational issues" were raised several months ago. Deloitte insisted it had not been told this was why the contract had ended. Deloitte's contract was terminated last month. Lloyds said this was because of the problems at the centre, which were identified after "operational issues" were raised several months ago. Deloitte insisted it had not been told this was the reason why the contract had ended.
Richard Lloyd, executive director of consumer watchdog Which?, said: "If people are concerned that their claim was not investigated properly by Lloyds, they should resubmit their claim to the bank.Richard Lloyd, executive director of consumer watchdog Which?, said: "If people are concerned that their claim was not investigated properly by Lloyds, they should resubmit their claim to the bank.
PPI is already the biggest financial mis-selling scandal of all time and this investigation yet again casts doubt on claims by banks that they are cleaning up their own act." "PPI is already the biggest financial mis-selling scandal of all time and this investigation yet again casts doubt on claims by banks that they are cleaning up their own act."
Lloyds has already paid out £4.3bn to 1.3 million customers and has set aside a further £2.4bn in future claims after consumers were mis-sold payment protection insurance they did not want or need. Lloyds and other banks have argued that many claims over the insurance are spurious. Lloyds has already paid out £4.3bn to 1.3 million customers and has set aside a further £2.4bn in future claims after consumers were mis-sold payment protection insurance they did not want or need. Lloyds and other banks have argued that many claims over the insurance are spurious.
The bailed out bank revealed it had terminated Deloitte's contract after the Times reported that trainees in the call centre 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 with the ombudsman. The bailed-out bank revealed it had terminated Deloitte's contract after the Times reported that trainees in the call centre at Royal Mint Court 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 with the ombudsman.
The work has now shifted to Huntswood, one of two contractors also working for the bank.The work has now shifted to Huntswood, 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. It also cited a Lloyds internal manual, The Lighthouse Guide, saying: "If some or all of the documentation is missing it should not stop you being able to undertake a review." 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.
It added that handlers should work on the assumption that sales processes across the group were "compliant and robust". The newspaper also cited a Lloyds internal manual, The Lighthouse Guide, saying: "If some or all of the documentation is missing it should not stop you being able to undertake a review."
The manual added that handlers should work on the assumption that sales processes across the group were "compliant and robust".
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."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," Deloitte 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.
The City watchdog, the Financial Conduct Authority, said it was aware of the issues raised and had been working with the bank – which was fined £4.3m in February for delaying PPI settlements - to ensure these are resolved and the interests' of consumers are properly considered. "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."
"Our rules are very clear that firms are expected to learn from previous complaints. So if there are significant numbers of complaints coming in about the same thing – that is a clear warning sign that something isn't right." The City watchdog, the Financial Conduct Authority, said it was aware of the issues raised and had been working with the bank – which was fined £4.3m in February for delaying PPI settlements – to ensure they are resolved and the interests' of consumers are properly considered.
A spokesman said: "Our rules are very clear that firms are expected to learn from previous complaints. So if there are significant numbers of complaints coming in about the same thing, that is a clear warning sign that something isn't right."