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Lloyds to pay £283m in compensation to 590,000 borrowers for arrears management failings

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27/07/2017
Lloyds to pay £283m in compensation to 590,000 borrowers for arrears management failings

All customers who went into arrears during that period, with mortgages from any of LBG’s brands, stand to receive compensation. LBG’s brands are Lloyds Bank, Halifax, Bank of Scotland, Cheltenham & Gloucester, TMB, BM Solutions, IF and Scottish Widows.

Lloyds acknowledged that when customers fell into arrears, the bank did not always do enough to understand customers’ circumstances to be confident that their arrears payment plans were affordable and sustainable.

The bank plans to refund all fees charged to customers for arrears management and broken payment arrangements from 1 January 2009 to January 2016.

Lloyds will also offer payments for potential distress and inconvenience, and consequential loss which customers may have experienced as a result of not being able to keep up with unsustainable repayment plans.

Lloyds will write to all affected customers to explain the size of their refund and to prompt claims for any distress and inconvenience experienced. It will also advise customers to consider whether they suffered any consequential losses as a result of this issue, such as a direct debit fee charged because of a broken payment plan.

The group has already started sending letters to those affected, and plans to make all payments by the end of this year.

Lloyds Banking Group suspended its arrears management fees in January 2016.

If you would like to know more, visit the FAQ page here – the information applies across all LBG brands.

 

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