Lloyds fined £4.3m over PPI payouts

Feb 19 2013

Lloyds Banking Group has been fined £4.3 million by the City watchdog after up to 140,000 customers had their payment protection insurance compensation payments delayed.

The customers were not paid redress within 28 days of receiving a decision letter and almost 9,000 had to wait more than six months for their compensation, said the Financial Services Authority (FSA).

The failings relate to Lloyds TSB Bank, Lloyds TSB Scotland and Bank of Scotland, leading to a total fine of £4.3 million.