Lloyds Banking Group £3.85 Billion In Red After PPI Cost Wipes Out Profit

worldtraveller

Mis-selling of Payment Protection Insurance (PPI) has put a serious dent in the earnings of Lloyds Banking Group.

Overall the part-nationalised bank, which is 41% owned by the British Government, made a loss of £3.85bn.

This is mainly because the bank took a hit of £3.2bn on the cost of paying compensation to customers who were wrongly sold PPI.

Lloyds says that on a combined business basis, profits for the first nine months of this year came in at £1.74bn, a drop of 30% on the same period last year.

The profit for the third quarter alone was £644m, down by 25%.

Sky News

Cheers :money:!!

michaels

Well at least we only own 41% of the loss

Seeing a silver lining to every cloud all those PPI payouts are likely to go going to the sort of people who will put it straight back in to the economy and we can do with all the boosts to spending we can get at the moment.

oldvicar

Just want to thank the above posters for helping me see the bright side and stop me crying over my share certificates.

Masomnia

oldvicar wrote: »

Just want to thank the above posters for helping me see the bright side and stop me crying over my share certificates.

I'm not crying over my Lloyds shares today!

wotsthat

Masomnia wrote: »

I'm not crying over my Lloyds shares today!

I've been crying for a long time.

My average buying price used to be over £5. 'Fortunately' due to the magic of pound cost averaging I've averaged down to just under £2. It's worked out quite well - I now own lots more worthless shares and have less money in my bank account too.

I'd like to thank MSE for highlighting the PPI issue. Until the campaign people who had bought PPI seemed quite happy to have purchased such a product. Luckily, after some instruction, they soon came to realise that they [STRIKE]could get something for nothing[/STRIKE] had been ripped off.

Graham_Devon

wotsthat wrote: »

I've been crying for a long time.

My average buying price used to be over £5. 'Fortunately' due to the magic of pound cost averaging I've averaged down to just under £2. It's worked out quite well - I now own lots more worthless shares and have less money in my bank account too.

I'd like to thank MSE for highlighting the PPI issue. Until the campaign people who had bought PPI seemed quite happy to have purchased such a product. Luckily, after some instruction, they soon came to realise that they [STRIKE]could get something for nothing[/STRIKE] had been ripped off.

I have recently successfully reclaimed for my Dad. He was taken ill and laid off due to illness, forced to retire. Although he could get everything else succesfully, Lloyds refused to honour his PPI claim.

Therefore, it was much to my delight when dad finally, after 2 years of trying got the letter confirming he would be receiving all his payments back.

Lloyds shot themselves in the foot. Honouring his claim would have cost them 3 times less than the payout they are now making for being greedy lying theives.

Unfortunately they are REALLY dragging their feet on actually paying out, so apparently he's in line for more compensation for the delays in paying what he's owed. Of course, if the shoe was on the other foot, theres no way lloyds would wait this long for their money.

I feel nothing for Lloyds. Crooks is the best way of describing them in my view, and as soon as Dad get's his money he's also switching everything he has with them.

Percy1983

This is the same as me getting a refund on my car insurance each year as I didn't need it.

Those who needed it claimed and those who didn't claim it back.

I never had PPI as I had the sense to read what I was signing, yet if I did take it I could have had payment protection for free.

wotsthat

Graham_Devon wrote: »

I have recently successfully reclaimed for my Dad. He was taken ill and laid off due to illness, forced to retire. Although he could get everything else succesfully, Lloyds refused to honour his PPI claim.

Therefore, it was much to my delight when dad finally, after 2 years of trying got the letter confirming he would be receiving all his payments back.

Good - I'm pleased for him.

In a wider sense what the PPI adventure has confirmed is that there is a growing culture of compensation and entitlement in which people buy now and think later. That's being generous - in most cases people can't be arsed to even think later - why bother - after all isn't that what MSE for?

If I buy an insurance product and the t&c's tell me that such and such is covered but I later find out that this is not the case then I've been mis-sold.

If I'm sold an insurance product which I don't really need have I been mis-sold? I am an adult after all.

leveller2911

wotsthat wrote: »

I've been crying for a long time.

My average buying price used to be over £5. 'Fortunately' due to the magic of pound cost averaging I've averaged down to just under £2. It's worked out quite well - I now own lots more worthless shares and have less money in my bank account too.

I'd like to thank MSE for highlighting the PPI issue. Until the campaign people who had bought PPI seemed quite happy to have purchased such a product. Luckily, after some instruction, they soon came to realise that they [STRIKE]could get something for nothing[/STRIKE] had been ripped off.

I had PPI with a Halifax loan(years ago) and was told it would cover me for unemployment, later found out it doesn't cover self employed,.

IMO its not "free" money , the Lenders were dis-honest and they finally got dragged over the coals.They deceived people and thanks to websites like this they have been suitably punished.Personally I got back £3,976........:D

Maybe people who buy shares in the banks should look into the behaviour of the companies before they invest.

Its great to read the threads on PPI success stories on the site and every success story is a slap on the @rse for the banks, personally I love it.... If they had acted properly none of this would have happend...

CLAPTON

the initial and main problem with PPI was the dificulty of actually claiming; lots and lots of small print and exceptions
whilst I agree that people should read the small print, in this case it was very very difficutl to undertsand
people, in many case bought from their bank becasue they trusted them.

the banks shot themselves in the foot by being so 'clever' at refusing so many claims and making so much profit.

then it all went wrong for them; no sympathy at all and sadly I own Lloyds shares too.

Graham_Devon

Percy1983 wrote: »

This is the same as me getting a refund on my car insurance each year as I didn't need it.

Those who needed it claimed and those who didn't claim it back.

I never had PPI as I had the sense to read what I was signing, yet if I did take it I could have had payment protection for free.

It's not really. Although there is much truth in what you say, i.e. people are now claiming it back because they can - they can only claim it back because of how it was sold. I.e. not everyone can claim...only if it was actually miss sold.

It was sold in such a way that even if you did have a legitimate claim, it was unlikely you would get paid out, as I found out. If he'd have known what he does now, if he'd have taken Lloyds to court on the issue, he'd have won without problems.

He wasn't trying for a fast buck. He'd been forced to retire on health grounds by the docs. He has (had) all the benefits stuff as he hadn't reached retirement age at the time. He was entitled to a mobility car etc, all because of something that 6 monmths previous, he didn;t have a clue he was going to have issues with. But even though everything else went swimingly (including insurance claims on a couple of other financial products) Lloyds took a very dodgy route to reject the claim. He's still paying that loan off. He took the PPI to protect himself from that and took it in branch with an advisor.

No point in people paying money for a service they will likely never be able to use...hence why banks are now paying out shed loads. For all those who succesfully reclaimed money....they would never have been able to use what they were paying for in the first place, hence getting paid back.

I won't ever make a large PPI claim as I've never taken it. The only one I have put in is for Egg, when they applied it to my personal loan even when I specificially denied it. Took 6 months for me to notice when I got my first statement (internet banking didnt show it), so stopped it. Claiming those 6 months back out of principal.