Lloyds Banking Group has announced today that they will be taking back £2 million in bonuses.
This decision has been made in the wake of the Personal Protection Insurance (PPI) scandal which saw thousands of customers mis-sold PPI. Promises were made to customers claiming that the insurance would cover repayments if the debtor was not able to make them due to illness. Unbeknownst to these individuals many of them would have been ineligible to claim, making their PPI a waste of money.
As well as making the headlines this scandal has also hit prime time TV, or at least its adverts, as companies which apparently specialise in helping customers receive compensation for their PPI frequently appear in ad breaks.
There certainly seems to be a demand for this service as Lloyds have had to earmark over £3 billion just for these compensation payouts. It is expected that their losses, to be announced this week, will be a similar value.
10 executives will be losing a substantial percentage of their bonus, including four board directors. The former chief executive is expected to lose more than £600,000.
Photo owned by David Wright