Former Lloyds boss blames bogus PPI claims for high compensation bill
15 February 2013
Launching an attack on the bank's customers, former Lloyds boss Eric Daniels yesterday blamed bogus PPI claims for pushing up the compensation bill.
According to Daniels – who is widely blamed for steering Lloyds to the brink of collapse in 2008 – about 50 per cent of claims on payment protection insurance policies were 'completely illegitimate'.
Putting in a rare public appearance post retirement from the bailed-out bank around two years ago, Daniels told the banking commission of MPs and peers he was 'deeply regretful' about customers who were genuine victims of mis-selling. He however chose to put the blame for pushing up the compensation bill on dishonest claimants.
He also did not apologise for the debacle, claiming PPI was 'good value for money'. He said, 'In the great majority of cases customers received a good sales process, and received a product that suited them.'
Daniels' version of events though was dismissed last night by the Financial Ombudsman, which pointed out that almost three-quarters of PPI complaints it received about Lloyds TSB had been upheld in favour of customers.
Last October, the ombudsman said that bankers' complaints about bogus claims needed to be treated with 'cynicism'.