Lloyds Banking Group has agreed to pay around £238m in compensation to nearly 590,000 customers for overcharging customers in mortgage arrears for seven years.
In consultation with the Financial Conduct Authority (FCA), the bank has now launched a redress scheme for the affected customers – who were incurred fees for arrears management and broken payment arrangements between January 2009 and 2016.
Go deeper with GlobalData
The bank will compensate customers for “distress and inconvenience,” and for losses of not being able to keep up with unfair repayment plans.
At the same time, it will also refund customers who entered the bank’s litigation process during this period.
The bank also committed to pay an additional 8% interest to customers who were deprived of funds.
FCA executive director of supervision- retail and authorisations Jonathan Davidson said: “Ensuring fair treatment of customers, especially those in financial difficulties or who are vulnerable, is a key priority for the FCA. We continue to engage with Lloyds as it works to improve the way it treats customers in arrears.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
