Lloyds systemic rejection of PPI claims
Lloyds has admitted mishandling complaints at a centre set up to deal with PPI mis-selling.
The admission comes after an undercover investigation from the Times newspaper.
An undercover reporter uncovered a series of issues and that staff at one of the bank's complaints handling centres had been taught to "play the system".
The reporter said he was told to ignore possible fraud by Lloyds salesmen and that most complainants would give up if rejected the first time. workers were therefore encouraged to make the process as long as possible in the hope customers dropped their claim.
The Times reporter said he was told that a job as a PPI complaint handler could be "morally difficult" and that they should effectively turn a blind eye to the risk of fraud.
Deliotte, who were running the centre, had their contract terminated last month.
The Times claims executives for recruitment firm Momenta, appointed by Deloitte, told trainees that many loan agreements had been forged, with salesmen ticking PPI boxes on forms without customers' consent.
However, she added that call centre staff should proceed on the basis that the documents were genuine even if a fraud was likely.
Lloyd's internal manual, The Lighthouse Guide, said handlers should work on the assumption that sales processes across the group were "compliant and robust" despite Lloyds admitting to mis-selling products.
To date Lloyds has paid out £4.3bn to 1.3 million customers who were victims of the PPI mis-selling.
Payment protection insurance was designed to cover loan repayments if the policyholder became ill, had an accident or lost their job.
However, the policies were mis-sold on a huge scale to those who did not want or need it, or would have been unable to make a claim.
Lloyds said it had identified issues at the centre independently. It added that it believed that some of the comments made to the reporter were "isolated" and were now being addressed.
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