The mis-selling of useless payment protection insurance may have been all but eliminated but the scars remain. Last week, the Financial Services Authority hit Lloyds Banking Group with a £4.3million fine over PPI. Not for rampant mis-selling but for failing to pay compensation quickly enough. Between May 2011 and March 2012 about 140,000 customers did not get their money in the required 28 days following notification from Lloyds that compensation was coming their way. The fine did not take Financial Mail by surprise. In December 2011 and January 2012 we highlighted the problems many Lloyds customers were having in getting PPI compensation.

Indeed, at the time, we prised an admission out of the bank confirming that some customers were suffering lengthy delays, although it was somewhat economical with the truth. It claimed that under five per cent of customers were affected by delays beyond 28 days. Yet as the details of the FSA fine confirmed last week, delays were being suffered by nearly a quarter of customers identified by the bank as eligible for redress. And 8,800 had to wait more than six months for compensation to arrive. Unacceptable on any level. In light of such dilatory behaviour, it seems a bit rich for the banks to be asking the regulator to impose a spring 2014 deadline for the public to submit all PPI claims....Read more here

AAD Blog: Lloyds in push to halt false PPI claims - allaboutFORUMS