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Caught out: Lloyds found mis-handling PPI complaints

Magnifying glass

By now, you’ve probably heard all about PPI. It has the dubious honour of being the biggest financial mis-selling scandal of all time. And now, an investigation has found more problems with the complaints process.

Sadly, it was with little surprise that I read about the bad practice discovered at Lloyds bank’s biggest Payment Protection Insurance (PPI) complaints handling unit. An undercover journalist from The Times posed as an employee, and found that staff in the unit were playing the system to the detriment of consumers.

The investigation uncovered a culture where complaint handlers turned a blind eye to the risk of fraud. This yet again casts doubt on claims by banks that they are cleaning up their acts.

It isn’t hard to see why people have lost trust in the banks. This investigation shows that, more than ever, we need Big Change in the banking industry.

We must get tough on banks

From the beginning, many banks have been in denial about the sheer scale of PPI mis-selling. Our executive director Richard Lloyd said:

‘Instead of peddling the myth that many PPI complaints are fraudulent, Lloyds should have been getting their own house in order and properly dealing with legitimate complaints.

‘We have repeatedly raised concerns with the banks, regulators and Financial Ombudsman Service about the worrying variation in quality of PPI complaint handling. There are rules on how banks should handle complaints, and they should be making it as easy as possible for people entitled to a refund to claim back their money without any hassle.’

An investigation by the financial regulator should make sure that all banks are handling complaints properly. And, importantly, the regulator must take tough action on those banks found breaking the rules.

Made a PPI complaint with Lloyds?

If you’re concerned that your claim was not investigated properly, you should resubmit your complaint to the bank.

And if you’re thinking of starting a PPI reclaim, it’s worth remembering a claims management company won’t speed up this process or get you any more money. In fact, they will take a good chunk of any money you do receive as a fee. Instead, use our quick and free tool to reclaim your PPI and make sure 100% of the compensation goes to you.

Are you surprised by the revelations of this undercover investigation? Will you resubmit your PPI complaint to Lloyds as a result?


The CEO of Lloyds brought in from Santander UK presided over a very shoddy service culture so not a whit surprised. Santander was in Which? reports for a long time as one of the worst banks. The undercover case regarding Lloyd’s PPI was at a site run and contracted out to Deloitte’s – and no doubt with incentives in the contract to minimise costs. Perhaps this document should be the basis of establishing in black and white why Deloitte’s would be interested in minimising successful claims.

Whilst shareholders may feel this is a good idea to save money the deliberateness of the mis-handling reeks and surely demand a hefty fine and a look at the fitness of some executives to be running a financial institution.

I believe that, in general, customer services departments exist to benefit the company and not the customer. My experience with Lloyds has reinforced this.

One thing they did which makes life difficult for complainants is to claim that the department is not allowed to use email. To get round this email the CEO on antonio.osorio@lloydsbanking.com and the matter will be referred to “Executive Complaints” who do use email after a period of denial.

simeon.brown@lloydsbanking.com emails as “Manager Group Executive Complaints”.

All banks should be required to publish an email address for complaints and have an automatic acknowledgement set up.

Bilal Ahmadmian says:
12 June 2013

I found out from a statement that a few thousand pounds was taken from lloyds as a ppi loan advance. When i contacted them, they said i had cancelled with in 30 days and the case is closed. then why would they take a lump sump out and call it loan protection insurance?

i am going to re submit my compalint and then seek further reference to the financial ombudsman.

Very disappointed that my hard earnt cash has to be stuck in the bank!!

I am not surprised by any misconduct by a bank or any financial institution. I would however be surprised if they ever ended up in court. Perhaps we need to get Margaret Hodge to interrogate them.