Deloitte denies it was axed by Lloyds over complaints bungle

DELOITTE HAS COME OUT FIGHTING over claims it was fired by Lloyds Banking Group from running a payment protection insurance complaints centre because it mismanaged how customer complaints were dealt with.

In a statement, Lloyds said it became “aware of issues” at the Deloitte-run PPI complaints centre earlier this year and launched an investigation that resulted in Deloitte being axed as its supplier.

However, Deloitte said its termination was “unrelated” to press articles that had linked issues at the centre with its dismissal, and that it had been told by Lloyds of its intention to cancel its contract in May when the bank decided to move from three suppliers to two.

Defending its work at the centre, Deloitte said: “In processing claims in accordance with those bank policies and procedures, we provided a high level of service throughout the period.”

The Times had claimed that an undercover reporter who went through the recruitment and training process discovered that staff at the PPI complaint handler at Royal Mint Court were being” taught how to play the system to the detriment of clients”.

Lloyds denied that the comments made in The Times, which included claims that staff were told to “effectively turn a blind eye to the risk of fraud”, reflected its “high training standards” but allowed that it was retraining its staff under the guidance of a new supplier.

The bank did not elaborate on the exact reason for terminating the contract with Deloitte. However, sources told City AM that the centre had missed targets and had trouble retaining staff for at least six months before it discovered it had problems at the unit.

Deloitte’s unit had long been blighted by quality control issues, leading to delays and rising costs, the paper added.