Lloyds Banking Group has been fined £117m ($180m) by the UK’s Financial Conduct Authority (FCA) for mis-handling payment protection insurance (PPI) complaints.
According to the watchdog, Lloyds evaluated customer complaints on over 2.3 million PPI policies between March 2012 and May 2013, and rejected 37% of the complaints.
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FCA acting director of enforcement and market oversight Georgina Philippou said: "PPI complaint handling is a high priority issue for the FCA. If trust in financial services is going to be restored following the widespread mis-selling of PPI, then customers need to be confident that their complaints will be treated fairly.
"The size of the fine today reflects the fact that so many complaints were mishandled by Lloyds. Customers who had already been treated unfairly once by being mis-sold PPI were treated unfairly a second time and denied the redress they were owed. Lloyds’ conduct was unacceptable."
The bank is set to cut down staff bonuses by £30m this year in response to the fine.
Lloyds got a 30% discount on the fine amount as it agreed to settle at an early stage of the probe.
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By GlobalData
