Lloyds increase PPI compensation funds by £375m

The biggest payment protection insurance mis seller, Lloyds Banking Group, have had to set aside a further £375m to cover the costs of PPI redress following an influx of claims in recent weeks.

The high-street lender had already allocated £3.2billion for PPI claims.

The news follows on from Barclays recalculation last week; it has had to increase its payment protection insurance provision by another £300m on top of its £1bn original estimate.

Lloyds Banking Group was the biggest culprit in the PPI mis selling scandal which saw millions of customers wrongly sold payment protection insurance.

Designed to protect policy holders should they become redundant or unable to work through illness or following an accident therefore leaving them unable to meet their monthly repayments, the product was sold to customers who either couldn’t benefit from it, were pressured into buying it or were oblivious to even having it.

It is estimated that there is still £5bn of PPI redress waiting to be claimed. If you have taken out a loan or credit card in the past 10 years, there is a chance you have been mis sold PPI and could be entitled to a share of that £5bn compensation pot.