The Lloyds Banking Group is to discuss about clawing back the bonus payments from former chief executive Eric Daniels. Lloyds has currently around £12 billion set aside for PPI compensation complaints.
Lloyds is currently the biggest mis seller of PPI despite a quarter of the bank owned by the government.
Eric Daniels is now a senior adviser with private equity firm CVC Capital Partners and investment banking group StormHarbour after stepping down from his position as CEO in Lloyds in 2011.
PPI is the UK’s biggest financial scandal in history repaying over £13.3 billion to consumers and having banks set aside a total of £20 billion. Lloyds makes up half of the repayments to consumers.
According to the Financial Services Compensation Scheme, the PPI recompense is yet to end despite the Financial Ombudsman claiming a reduction in the number of PPI complaints this year. The FSCS Chief Director Mark Neale said that it is highly unlikely that the UK has reached the peak of PPI complaints in the UK.
However, according to economic analysts, PPI became an unexpected stimulus to the local UK economy. Most people made use of the PPI refunds as a holiday vacation fund or a downpayment for a new vehicle.
The average PPI compensation amounts to £3000-3500.
