Former Lloyds Executive Eric Daniels pointed out that Lloyds, the bank that he helped push to the borderlines of bankruptcy and disgrace, was only doing “the work of angels” and that “PPI was good value for money”. He apologised sincerely to all customers that the bank mis sold PPI, but he said that around half the total PPI claims Lloyds receives are illegitimate.
He stressed out that customers received a good sales process from the bank and purchased a product they knew they were suitable. He insisted that customers were responsible for sending in bogus PPI claims to increase the bank’s compensation bill.
However, the Financial Ombudsman Service dismisses all statements from Daniels as false as they verified on Monday that 3 out of 4 PPI claims going into Lloyds are valid claims. The FOS encouraged customers to view the statements of former Lloyds boss Eric Daniels with cynicism.
Lloyds is struggling to compensate different financial scandals aside from PPI. It recently earmarked £90 million for compensating businesses it mis sold interest rate swap products from 2009-2011, and this compensation amount can increase to £200 million by the following month. It recently increased its PPI compensation provision by £1 billion, bringing its total to £6.3 billion, the largest any UK bank contributed to mis sold PPI.