Lloyds Bank group has been fined £4.3 million by the FSA (Financial Services authority) for unacceptable delays in paying compensation for PPI (Payment Protection Insurance) related claims. This relates to misselling of insurance policies that would meet loan or credit card payments, should the purchasing consumer lose their job through various reasons. The insurance policy should then meet the payments.

Customer claims were meant to be processed within a month but many of those awaiting reimbursement from the banks within the group, waited 6 months or more to recieve monies due to them. Over 140,000 customers were involved out of a total of over half a million and the response to client chasing was vague and inadequate. 

It isn't just Lloyds who were involved in this scandal of course, the total currently paid out to PPI claimants by UK banks is over £10 billion and the UK banks are hoping to put a deadline on claims of April 2014, in an effort to put this scandal behind them. However, it is unlikely that the FSA will be in an accommodating mood, given thevolume of clients involved and the damage done to trust in banks, once held in the highest esteem by the average UK consumer.