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Lloyds Bank controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2020

    FCA fines Lloyds Bank over mortgage-customer handling

    Fine or penalty

    The UK Financial Conduct Authority fined Lloyds Bank £64 million for failures in handling mortgage customers in financial difficulty or arrears. The regulator said the banks risked treating customers unfairly by not sufficiently understanding their circumstances. Lloyds said impacted customers had been contacted and reimbursed.

    Company response

    • Refund or compensation — Lloyds

      Lloyds said that all customers impacted have already been contacted and reimbursed and that customers need to take no action.

    • Apology — Lloyds Banking Group

      We have contacted all customers who were affected between 2011 and 2015 to apologise

    • Refund or compensation — Lloyds Banking Group

      The bank began a compensation scheme for affected customers in 2017 and has nearly completed the payments.

    Source excerpt

    • Lloyds and its Bank of Scotland and The Mortgage Business units are set to pay around £300 million in redress to 526,000 customers, and the redress program is nearly complete, the FCA said in a statement on Thursday.   Â
    • Britain's Financial Conduct Authority has fined  £64 million ($81.26 million) for failures in handling hundreds of thousands of mortgage customers in difficulties or arrears.Lloyds Bank
    • "By not sufficiently understanding their customers' circumstances the banks risked treating unfairly more than a quarter of a million customers in mortgage arrears, over several years," said Mark Steward, the FCA's executive director of enforcement and market oversight.
    Source

  2. 2011

    Payment protection insurance legal challenge withdrawn

    Following a High Court ruling concerning PPI complaints and sales practices, Lloyds withdrew from the banks’ legal challenge.

    Source

  3. 2005

    Payment protection insurance compliance concerns

    Financial Services Authority investigations identified weaknesses in compliance controls and customer treatment within payment protection insurance sales, including at major providers such as Lloyds.

    Source

  4. Historical links between acquired banks and slavery

    Historical research cited by the reference material identifies eleven banks acquired by Lloyds between 1865 and 1923 that had some involvement in slavery or slave-based finance.

    Source