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Bank misses deadline for HBOS scam payouts

Lloyds Banking Group has offered £35,000 each to cover expenses for victims of the HBOS fraud scandal after missing a self-imposed end of June deadline to make compensation offers.

The group said it had made offers to just seven of 67 customers hit by the £245m loan scam, dating back more than a decade, that destroyed several businesses.
It said it was close to making offers to eight more clients.
Six men including two former Halifax Bank of Scotland employees were jailed in February over the scam, which centred on the lender’s unit in Reading.
The fraud, from 2003 and 2007, saw bank manager Lynden Scourfield approve inappropriate loans for struggling businesses at the behest of financial consultant David Mills in exchange for designer watches, exotic holidays and sex parties.
Many of the firms went bankrupt and some of the owners lost their homes while Mills walked away with huge consultancy fees.

Lloyds said in April that it expected to pay out £100m in compensation to victims, who include Deal Or No Deal presenter Noel Edmonds.
Victims have accused the bank of dragging out the process and underestimating the final amount it will have to pay.
Lloyds, which acquired HBOS in 2009, said part of the reason for the delay in compensation offers was that it was still waiting for information from victims that would allow it to decide on payouts.
Adrian White, Lloyds’ chief operating officer for commercial banking, said: “We are disappointed that getting to offers is taking longer than we had hoped, but we are committed to doing everything we can to support those affected as we continue with the review.”

Source: Sky

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My name is Joel Bissitt. I have been an entrepreneur for 24 years and have run many small businesses across various sectors. For the last 10 years I have worked mainly within online media, franchising and small business start-ups.

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