Part-nationalised bank begins costly mail shot to discover if credit card customers were mis-sold payment protection insurance (PPI).
Thousands of credit and debit card users were double-charged by mistake on New Year's Eve, Lloyds Banking Group has confirmed.
Big lenders, including government-backed banks, are refusing to adopt new standards for dealing with payment protection insurance complaints.
Sales of PPI topped the list of complaints considered by the Financial Ombudsman in the last financial year... And complaints would still be entitled to take their case to the Financial Ombudsman Service (FOS) if the bank has not dealt with it within eight weeks of the initial complaint - even if the case is on hold.
Lloyds TSB - which is 43 per cent owned by the taxpayer after being saved by a multi-billion pound bail-out - said it had received 300,000 complaints in the first six months of the year....the same division received 36,121 from disgruntled insurance customers - and upheld almost 68 per cent, suggesting massive problems in its insurance products. Of the 103,686 Lloyds TSB bank and credit card customers who complained about their experience, only 12 per cent were not dismissed.
Two and three quarter million people could be refunded as much as £2.7bn for being mis-sold Payment Protection Insurance (PPI)... The FSA said that over five years it had found "wide and deep evidence of weaknesses in PPI sales"... Average compensation will vary from £900 for those who were mis-sold about regular-premium PPI policies to £1,800 for those mis-sold single-premium policies...A long running campaign by consumer groups such as Citizens Advice and Which? have accused the sellers of PPI in engaging in a widespread "protection racket".
The FSA has taken action against 20 firms over poor PPI sales practices, including levying a £7m fine on Alliance & Leicester.
Many people are still being misled into buying payment protection insurance (PPI) to cover their credit card payments.