Lloyds has to work with a $1.5 billion mess after they have seen that there are several differently mis-sold loans to their clients.
This will cause another hit to the assets of the company, most especially the British economy. It could narrow down the possible finances of industry, as well.
The main reason why they have to shell out this much money is their payment protection insurance or PPI. Supposedly, this insurance should only be given to clients who recently got unemployed or are facing medical problems. It turned out that most of the recipients of the program are not even eligible. There are also cases when they were selling it to people who do not even need such payment policies.
To look at it in the bigger picture, this huge problem took half of the whole industry’s possible asset increase. Lloyd is among the biggest players in it and the market cannot avoid another let down from any of its members.
This is not the end of the problem for Lloyds Bank. They are looking at another $1 billion shell out next year to fully compensate for the losses. This is because there are still a lot of people who are claiming to be the wrongful recipients of the program.
