Lloyds Banking Group faces record £100m PPI fine this week
Lloyds Banking Group could be slammed with a record fine from the FCA for its handling of PPI complaints.
The bank – which is currently still part-owned by the taxpayer – could receive a penalty of “well over £100m” from City watchdog the FCA .
The fine could be made public as early as Friday, Sky News reports.
Compared to fines recently doled out for various UK and US' banks involvement in the forex and Libor scandals the fine is relatively small, but it is a significant amount for the FCA.
Last month it handed Clydesdale Bank a £20.7m fine, which was at that time the largest PPI-related penalty in FCA history.
Lloyds Bank was one of the biggest players in the PPI market. The bank has set aside more than £12bn to deal with compensation claims from customers.
Lloyds and the FCA declined to comment.
Just last week the FCA said it was considering changes to rules around PPI, following a Supreme Court ruling in Plevin v Paragon.
The judge ruled that the fact the lender had failed to disclose how much commission it received from selling the PPI products created a “sufficiently extreme inequality of knowledge and understanding” between the two parties.