Lloyds takes near £1 billion hit for failures on PPI and mortgage arrears

Lloyds Banking Group has taken a near £1 billion hit after revealing it would refund customers for failures in its handling of mortgage arrears policies and set aside extra cash to address the mis-selling of payment protection insurance (PPI).


The lender has estimated it will have to shell out £283 million to repay approximately 590,000 mortgage customers who were mistakenly charged between 2009 and 2016 because of the way Lloyds applied policies relating to financial difficulty assessments.

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That is on top of £700 million put aside to deal with PPI claims.

It comes just months after Lloyds forked out an extra £350 million to cover the ballooning cost of the PPI mis-selling scandal, which has now reached over £18 billion.