PPI Claims: Lloyds Demands Earlier Cut-Off Point

Lloyds have said that banks should be let off the hook for selling PPI and the planned deadline should be brought forward from 2018. The FCA has set forth plans to draw a line under one of the biggest financial scandals of all time.

The Financial Conduct Authority (FCA) has stated that it cannot predict the future costs of compensation for mis-sold PPI faced by Lloyds banking group.


Lloyds PPI has been sold since the ‘90’s and during the mid-2000’s began to realise that PPI policies were actually quite a profitable outlet. The extent of Lloyds’ PPI mis-selling only become apparent at the end of the 2000’s when consumer group Which? reported that one in three customers of Lloyds PPI had purchased worthless insurance.

Lloyds is the biggest offender in the PPI scandal, it has sold almost half of the mis-sold policies, a massive percentage in comparison to its peers.


A decision is set to be made by the FCA in 2016 about whether to approve a PPI claim-by deadline. It is expected to be approved for autumn 2018 – while the decision could bring an end to the PPI scandal, it is hard to predict a trajectory for the future of Lloyds’ PPI and the amount they will end up paying out.

All of the Banks in Britain have already set aside a huge amount of money to compensate customers who have been mis-sold the insurance, with Lloyds’ PPI individual cost totalling £13bn.

What is the FCA Proposing?

  • Consumers have until 2018 to make complaints about Lloyds PPI sold up until 2016. You will not be able to claim PPI after the deadline.
  • You will need to prove that your complaint has been received by the firm before the deadline. This can be through obtaining written acknowledgement.
  • The FCA will inform customers of the deadline and the campaign will cost an estimated £42.2 million over two years.
  • The cost will be met by the bank firms that are most responsible for causing PPI complaints, which means Lloyds will be expected to stump up a considerable percentage of the advertising budget.
  • The FCA confirms that where response has been issued, customers can take their complaints to the Financial Ombudsman if they are not happy with outcome from their financial supplier.

How to Claim Back from Lloyds

The bank have claimed that they are keen to get any Lloyds PPI complaints dealt with as quickly as they can, so they encourage those who feel they have been mis-sold to call their complaints hotline in order to deal with the claim directly.

If you have been mis-sold a Blackhorse agreement, Lloyds suggest visiting the Blackhorse website to investigate the PPI complaint section.

In order to go ahead with any complaint you must first download the PPI questionnaire and fill it out in as much detail as possible, this will help process the complaint as efficiently as possible.

Send a Lloyds PPI questionnaire to: Lloyds Bank, PPI Customer Services, BX1 1LT. When they’ve made a decision, they will contact you clearly explaining their decision. Should you not receive the result you expected, then you have the right to refer your complaint to the Financial Ombudsman who will investigate the particular details of your case and make a final decision