Lloyds Banking Group has set aside more cash to cope with an influx of last-minute PPI claim submissions. As the deadline to claim draws nearer of 29 August 2019, the high street lender’s current PPI (Payment Protection Insurance) bill rose to more than £20bn as the flood of claims continues to roll in.
In the second quarter of 2019 Lloyds Bank took another £550m in PPI charges after a “significant increase” in customer requests to check whether they’ve had PPI with the bank.
Figures from the FCA (Financial Conduct Authority) show a collective total of £974.9m paid out by banks and lenders in the first quarter of the year.
Pre-tax profits for the lender have taken a dive, down by 7% to £2.9bn for the first half of 2019 as a direct result of the PPI payout. Disappointed analysts said they were expecting the figure to surpass £3bn.
One the big-five major high street lenders – Lloyds has racked up the biggest bill in what’s become known as the biggest financial scandal to hit the UK.
It’s £20bn PPI bill is more than double the second highest total, for Barclays, which has put aside £9.6bn so far.