Britain’s Lloyds criticized for mistreating victims of main fraud

FILE PHOTO: Individuals stroll previous a department of Lloyds Financial institution on Oxford Road in London, Britain July 28, 2016. REUTERS/Peter Nicholls

LONDON (Reuters) – Lloyds Banking Group (LLOY.L) has been closely criticized for mishandling a compensation scheme for victims of one in every of Britain’s largest banking scandals in a report revealed on Tuesday.

The fraud at Halifax Financial institution of Scotland’s Studying department led to 6 folks being jailed for a mixed 47 years.

The rip-off concerned small enterprise clients being focused and referred to a consultancy in return for bribes which the decide on the trial mentioned included designer watches, intercourse with prostitutes and international holidays.

The financial institution’s compensation scheme for victims had ‘severe shortcomings’, retired decide Ross Cranston mentioned in a assessment into how Lloyds compensated victims.

The financial institution probably didn’t correctly compensate some victims for monetary losses arising from the fraud’s impression on their enterprise, and confirmed an ‘unacceptable denial of duty’ for victims’ struggling, the assessment discovered.

The financial institution, which has paid greater than 100 million kilos ($128.30 million) in compensation over the fraud, mentioned it will supply all victims the choice to have their circumstances independently reviewed.

Politicians and campaigners have criticized Lloyds for its dealing with of the fraud at HBOS, a enterprise it purchased in a state-engineered takeover in 2009.

Cranston was appointed by Lloyds to evaluate its compensation scheme for victims, after monetary companies minister John Glen referred to as for an investigation in December final yr.

Lloyds Chief Government António Horta-Osório apologized to victims and mentioned he was dedicated to implementing the suggestions of the report.

Reporting By Iain Withers and Lawrence White, modifying by Huw Jones and Alexandra Hudson

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