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Lloyds Bank payment protection claims bill tops £13bn

payment protection claimsLloyds has set a further £1.4bn to compensate customers who were mis-sold PPI as it reports a 38% rise in half year pre-tax profits. The reports are the base of decision making of bank payment. The bank payment makes clear all problems associated with pre-tax profits.

This further provision means that the company has set aside £13bn compensation. The compensantion established by the company, affected the further provision.

Earlier in the year Lloyds were fined a record £117m by the FCA over the ongoing PPI scandal. The fine was largely expected, the three months to the end of June marked the last time that the bank may set aside provisions against its tax bill. Like many of the banks, Lloyds had hugely underestimated the volume of complaints they would receive. The volume of complaints cannot be underestimated, making all businesses bad. The ongoing PPI scandal gives a lot of risks relating what called as “fined”. The bank claimed that it had identified about 1.2 million previously rejected PPI complaints that were in need of a re-review, which now increases the cases needed further investigation to 1.4 million.

These cases are being reviewed because the FCA fined the bank as a result of an enquiry into the way that 2.3 million complaints were dealt with.

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