Lloyds Bank has set aside extra £100million to compensate HBOS small business victims as CEO expresses ‘deep regret’ for customers
Extra compensation is added to the £250 million already ring-fenced for firms who were swindled out of millions
LLOYDS BANK has said it has set aside a further £100million to compensate HBOS scandal victims.
The provision comes on top of the £250million that the bank has already put in to cover other costs arising from the case at the bank’s office in Reading, Berks.
Lloyds CEO Antonio Horta-Osório said: “We would like to express our deep regret and apologies to customers directly affected by the criminal behaviour of these individuals.”
George Kerevan MP, who chairs the All-Party Parliamentary Group on Banking, welcomed the move. But he said Lloyds must ensure any compensation system was fair and transparent.
He said: “It cannot be right for Lloyds alone, as the company involved in the fraudulent practices, to determine the redress process or to have the last say on the scale of compensation.”
Mr Kerevan urged the bank to take up the offer of a meeting with MPs to discuss their concerns. Lloyds has appointed Prof Russel Griggs OBE to do an independent review of compensation claims.
In February, six bankers were jailed over the scam. A court heard they ripped off small business customers to the tune of £245million and blew it on call girls and trips to Cannes and Barbados.
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Crooked HBOS banker Lynden Scour-field forced firms that needed cash to borrow from his friend’s crooked consultancy firm at rip-off rates.
The Financial Conduct Authority has also said it is re-opening its probe into the scam. The investigation will centre on how the scandal was allowed to happen.
It could see life bans for any individuals whose negligence enabled the fraud.
The FCA also has the power to impose a fine on Lloyds.
The scam took place between 2003 and 2007, before Lloyds took over HBOS, but it is responsible for the clean-up and any penalties.