PracticeAccounting FirmsLloyds sets aside £50m for investigation of Deloitte-run PPI centre

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.

Related Articles

David Sproul, Senior Partner and Chief Executive, Deloitte

Accounting Firms David Sproul, Senior Partner and Chief Executive, Deloitte

3w Lucy Skoulding, Reporter
Financial Power List 2018: 1-5 revealed

Accounting Firms Financial Power List 2018: 1-5 revealed

3w Lucy Skoulding, Reporter
Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

5m Alia Shoaib, Reporter
Deloitte global revenues hit record $38.8bn

Accounting Firms Deloitte global revenues hit record $38.8bn

5m Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

6m Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

6m Alia Shoaib, Reporter
Deloitte reports revenue growth of 11%

Accounting Firms Deloitte reports revenue growth of 11%

6m Alia Shoaib, Reporter
Deloitte acquires Swedish digital agency Acne

Accounting Firms Deloitte acquires Swedish digital agency Acne

6m Alia Shoaib, Reporter