Lloyds Banking Group controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2025
Motor-finance commission controversy
Lloyds Banking Group was among lenders exposed to potential compensation claims after a court ruling concerning car-finance arrangements found that undisclosed commissions paid to dealers could be unlawful. The group increased its provision substantially in 2025 while the wider regulatory and legal position continued to develop.
2021
FCA fines Lloyds insurance arm £90 million
Fine or penalty
In 2021, the Financial Conduct Authority fined Lloyds Banking Group's insurance arm £90 million over nine million home-insurance letters sent between 2009 and 2017. The regulator said the letters made misleading, unchecked claims about renewal prices. The FCA also found that a loyalty discount was promised to around 500,000 customers but was not applied. The penalty concerned the content of the renewal communications and the unfulfilled discount commitment.
Company response
Apology — Lloyds Banking Group
We're sorry that we got this wrong.
Refund or compensation — Lloyds Banking Group
Some 350,000 customers have been receiving payments owing to the error. They are being refunded a collective total of £13.5m, the equivalent of about £40 each.
Remediation — Lloyds Banking Group
We've written and made payment to those customers affected by the discount issue and they don't need to take any further action.
Source excerpt
But the Financial Conduct Authority (FCA) said Lloyds did not check the accuracy of the claims.
Separately, the FCA found that around 500,000 customers were told they would receive a discount based on "loyalty" for being a "valued customer", but the discount was never applied.
Lloyds Banking Group's insurance arm has been fined £90m for sending out nine million misleading letters between 2009 and 2017 about home insurance.
2020
Travelex ransomware attack and service disruption
Issue disclosure
Travelex was affected by a ransomware attack on New Year's Eve and took its global websites offline. Its update said some data had been encrypted, but that the extent was unknown and there was no evidence that structured personal customer data had been breached. The article also reported that online foreign-currency services at several banks were down. Travelex said it had opened an investigation, was working toward recovery, and had restored some internal systems; its CEO apologized for the inconvenience to partners and customers.
Company response
Investigation — Travelex
Travelex has opened an investigation and confirmed in an update that while there has been some data encryption, and the extent is not yet known, there is no evidence that structured personal customer data has been breached.
Remediation — Travelex
Travelex has said it is working towards total recovery after successfully containing affected areas and added that it has managed to restore a number of internal systems.
Apology — Travelex
In a statement, Travelex chief executive Tony D’Souza apologised for the inconvenience to partners and customers.
Source excerpt
London-headquartered foreign exchange company Travelex was forced to take all its global websites offline and is reportedly being held to ransom by the infamous ransomware strain called Sodinokibi, also known as REvil.
After a recent cyberattack on Travelex, a number of the UK’s biggest high street banks have been affected, with Royal Bank of Scotland, HSBC and Barclays among those left with no online travel money services.
More than a dozen of the major banking players, also including Lloyds Banking Group and Virgin Money, are reporting that their online foreign currency systems are down following the New Year’s Eve ransomware attack on Travelex.
2020
FCA fines Lloyds Banking Group over mortgage customer treatment
Fine or penalty
The Financial Conduct Authority fined Lloyds Banking Group £64 million over its treatment of mortgage customers in arrears between 2011 and 2015. The FCA said some customers were treated unfairly. Lloyds said it had contacted affected customers to apologise and had reimbursed customers charged fees; its compensation scheme was nearly complete.
Company response
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.
Apology — Lloyds Banking Group
Lloyds Banking Group said the bank has contacted all affected customers to apologise
Refund or compensation — Lloyds Banking Group
reimbursed those who were charged fees at the time
Source excerpt
We have contacted all customers who were affected between 2011 and 2015 to apologise and have already reimbursed all who were charged fees at the time,
The bank began a compensation scheme for affected customers in 2017 and has nearly completed the payments.
The FCA said three of the group's brands - Lloyds Bank, Bank of Scotland and The Mortgage Business - failed to gather enough information about people struggling to make their mortgage repayments.