Lloyds sets aside £50m for investigation of Deloitte-run PPI centre
Lloyds earmarks £50m to cover costs of an investigation into its governance of a Deloitte-run call centre
LLOYDS BANKING GROUP has set aside £50m to pay for an investigation into its governance of a Deloitte-run call centre dealing with payment protection insurance complaints.
The part taxpayer-owned bank reported a return to profit for the first half of 2013, earning £2.1bn during the period, up from a loss of £456m the previous year. The bank also announced it has been forced to set aside £450m to cover costs associated with the mis-selling of PPI.
Out of total, £50m has been earmarked to cover “likely administration costs” associated with its referral to the enforcement team of the Financial Conduct Authority over failings at its Deloitte-run PPI complaints centre at Royal Mint Court.
Lloyds axed Deloitte as its supplier earlier this year after it became “aware of issues” at the call centre. The decision came as an undercover investigation by The Times claimed staff at the centre were being encouraged to delay compensation requests.
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.
