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Pin to quick picksLloyds Share News (LLOY)

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Share Price: 57.28
Bid: 56.90
Ask: 56.92
Change: 1.40 (2.51%)
Spread: 0.02 (0.035%)
Open: 56.14
High: 57.28
Low: 56.10
Prev. Close: 55.88
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Banks to pay compensation after mis-selling scandal

Fri, 29th Jun 2012 14:35

The Financial Services Authority (FSA) revealed on Friday that it had found 'serious failings' in the way lenders sold complicated interest rate protection products to small- and medium-sized businesses (SMEs)."In order to provide as swift a solution to this problem as possible we have today confirmed that we have reached agreement with Barclays, HSBC, Lloyds and RBS to provide appropriate redress where mis-selling has occurred," the FSA said in a statement.Businesses were sold the swaps as a way of protecting them from large swings in interest rates. Apparently, some were even told that without the swaps their credit rating would suffer. Instead, since interest rates have come down in the wake of the 2008 financial crisis, the businesses have been left with cripplingly high financing costs. The banks will provide redress directly for those customers that bought the most complex products and have agreed to stop marketing interest rate 'structured collars' to retail customers, the regulator said.This is an all too similar picture for High Street banks which paid out billions of pounds-worth of compensation last year to settle claims that customers were mis-sold payment protection insurance (PPI).Since 2001, banks have sold a total of 28,000 interest rate protection products to customers. Of these, Barclays sold 5,000. The bank said that just 48 complaints have been ruled on by the Financial Ombudsman Service and nearly 90% were decided in its favour.Barclays, like Lloyds, has released a statement saying that the financial impact of remediation costs will "not be material".Some of the products are just simple 'caps' that fixed an upper limit to the interest rate on a loan, while others are more complex derivatives such as the 'structured collars' which fixed interest rates within a band but introduced a degree of interest rate speculation."For many small businesses this has been a difficult and distressing experience with many people's livelihoods affected. Our work has focused on ensuring a swift outcome for these businesses that form such an important part of the economy," said Martin Wheatley, the Managing Director of the FSA's Conduct Business Unit."I am pleased that Barclays, HSBC, Lloyds and RBS have agreed to do the right thing by their customers and offer redress or a review of past sales. These firms have responded to the need to provide a fair deal for customers by working with us, and I welcome this outcome," he said.  MPs are still reeling over Thursday's revelation that Barclays was found to be guilty of manipulating interbank lending rates and will face a fine of £290m, prompting calls for its Chief Executive, Bob Diamond, to step down. Other banks are also facing an inquiry regarding that matter.BC
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27 Jul 2023 15:44

UK dividends calendar - next 7 days

Friday 28 July 
3i Group PLCdividend payment date
abrdn Private Equity Opportunities Trust PLCdividend payment date
abrdn Smaller Companies Income Trust PLCdividend payment date
Barings Emerging EMEA Opportunities PLCdividend payment date
Big Yellow Group PLCdividend payment date
British Land Co PLCdividend payment date
Edinburgh Investment Trust PLCdividend payment date
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Helical PLCdividend payment date
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JPMorgan Global Emerging Markets Income Trust PLCdividend payment date
Martin Currie Global Portfolio Trust PLCdividend payment date
Paragon Banking Group PLCdividend payment date
Personal Assets Trust PLCspecial dividend payment date
Personal Assets Trust PLCdividend payment date
Polar Capital Holdings PLCdividend payment date
Premier Foods PLCdividend payment date
Real Estate Credit Investments Ltddividend payment date
Schroder Income Growth Fund PLCdividend payment date
Shires Income PLCdividend payment date
Troy Income & Growth Trust PLCdividend payment date
Vertu Motors PLCdividend payment date
Monday 31 July 
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F&C Investment Trust PLCdividend payment date
Johnson Matthey PLCdividend payment date
Mercantile Investment Trust PLCdividend payment date
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TR Property Investment Trust PLCdividend payment date
United Utilities Group PLCdividend payment date
Wednesday 2 August 
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Thursday 3 August 
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Aptitude Software Group PLCex-dividend payment date
Atrato Onsite Energy PLCex-dividend payment date
Axiom European Financial Debt Fund Ltdex-dividend payment date
Brunner Investment Trust PLCex-dividend payment date
BT Group PLCex-dividend payment date
Caledonia Investments PLCdividend payment date
CML Microsystems PLCex-dividend payment date
Dunedin Income Growth Investment Trust PLCex-dividend payment date
Foxtons Group PLCex-dividend payment date
Games Workshop Group PLCex-dividend payment date
GB Group PLCdividend payment date
Inchcape PLCex-dividend payment date
Invesco Perpetual UK Smaller Companies Investment Trust PLCex-dividend payment date
JPMorgan Global Core Real Assets Ltdex-dividend payment date
Jupiter Fund Management PLCex-dividend payment date
Jupiter Fund Management PLCspecial ex-dividend payment date
Lloyds Banking Group PLCex-dividend payment date
M&G Credit Income Investment Trust PLCex-dividend payment date
Mobico Group PLCex-dividend payment date
Moneysupermarket.com Group PLCex-dividend payment date
Nichols PLCex-dividend payment date
Oxford Instruments PLCex-dividend payment date
Picton Property Income Ltdex-dividend payment date
Polar Capital Global Financials Trust PLCex-dividend payment date
Polar Capital Global Healthcare Trust PLCex-dividend payment date
Reckitt Benckiser Group PLCex-dividend payment date
Rentokil Initial PLCex-dividend payment date
Schroder Real Estate Investment Trust Ltdex-dividend payment date
Starwood European Real Estate Finance Ltdex-dividend payment date
Tyman PLCex-dividend payment date
Unilever PLCex-dividend payment date
Vesuvius PLCex-dividend payment date
WH Smith PLCdividend payment date
  
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26 Jul 2023 12:05

European banks flag bad loan risks as global economy falters

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