Government-backed bank, Lloyds TSB, has sparked customer fury after revealing further delays in payment in PPI compensation to its customers.
Some customers have waited over 90 days since receiving confirmation of how much they will receive after being mis-sold PPI. Many are owed £1,000s.
Earlier this year, Lloyds stated that customers would not receive their payment for approximately 56 days (double the original agreed 28 days already), due to the huge backlog of claims - Lloyds were the biggest sellers of PPI.
While Lloyds insists it has cleared some of the backlog, it says the extra delay largely affects those who have yet to pay off the loan the PPI was attached to. It says once PPI is removed, the loans need to be restructured, which creates extra complications.
Lloyds refuses to state how many payments are held up by these extra delays, only adding: "Of the complaints to be processed, fewer than 5% are affected by this issue on delays."
The Financial Ombudsman Service, which arbitrates in disputes between banks and their customers, says providers must pay any interest due on compensation up to the point of payment.
Lloyds confirms it will make those interest payments and offer additional redress "on a case-by-case basis".
So those whose payments take over 28 days after an offer should make an extra claim.
Reclaim PPI
If you think you might have been mis-sold PPI, then visit our PPI claims page.
For more details about Lloyds PPI visit their official Lloyds PPI Complaints page.
