Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Lloyds appoints independent reviewer for HBOS fraud compensation claims

Lloyds has appointed an independent reviewer for the HBOS fraud for which six people were jailed earlier this year
Lloyds
Lloyds says it has written to those affected by the HBOS scandal

Lloyds Banking Group (LON:LLOY) has recruited professor Russel Griggs to conduct an independent review on compensation for victims of the HBOS scandal.

Griggs, who was appointed after consultation with the Financial Conduct Authority, will assess the cases of British companies that were affected by the Reading HBOS fraud.

The fraud involved two former bankers at HBOS who siphoned off money from struggling businesses, which were clients of the mortgage lender, to fund lavish holidays.

Six people were jailed earlier this year over the case, which is estimated to have cost victims £245mln.

Griggs has overseen previous reviews in the banking industry, including looking into ways to minimise the impact of branch closures and assessing the code for how banks pledge to lend to small businesses and consumers.

The protocol on branch closures for the British Bankers’ Association drew criticism over how quickly lenders were cutting back on branches and in areas where people may struggle to use online banking.

"Professor Griggs was selected for his experience in overseeing high profile reviews of a complex nature and for his clear understanding of SME businesses, as well as his track-record in ensuring the principles of fairness are followed in a number of joint Government, banking and industry initiatives," Lloyds said in a statement.

“The role of the independent reviewer will be to agree the scope, methodology and individual case outcomes of the review in order to ensure fair outcomes and that the review is undertaken effectively.”

Lloyds, which rescued HBOS in a takeover during the 2008 financial crisis,  said it has written to the majority of customers affected by the fraud since the announcement of its review last month.

The news follows the bank's statement last month that it has set aside a further £350mln to cover claims for mis-sold payment protection insurance (PPI) after the financial regulator moved its deadline for new complaints. The Financial Conduct Authority last week announced it was moving its cut-off date for new PPI complaints to August 2019 from a previous deadline of June 2019.

The further provision Lloyds has put aside to cover the extra two months will be included in the lender’s first quarter results.

Shares fell 0.45% to 69.03p in afternoon trading. 

 

View full LLOY profile View Profile

Lloyds Banking Group Timeline

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use