MSE News: Lloyds fined record £28m for mis-selling – are you affected?

Former_MSE_Helen

"Lloyds has been fined £28m by the FCA for sales incentive schemes, which pressured staff to sell..."

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Lloyds fined record £28m for mis-selling – are you affected?




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crispy_chris

Not sure this is the right forum really.

CKhalvashi

It also makes me wonder what will happen to the customer that I have dealt with, that have had Lloyds TSB (as it was then) close their accounts for reclaiming fees, when the bank were backed into the corner of paying out on one of these insurances, or refunding premiums (and have done neither).

It's also appalling to see that the bank will contact customers in the future; I'm betting that a fair few complaints will be overturned on this one.

pip895

crispy_chris wrote: »

Not sure this is the right forum really.

My thoughts exactly - might make a bit more sense under the general Investments banner - Investments were miss-sold.


I got conned into a terrible Elixir Market Linked Deposit thing. It was supposedly linked to the stock market but there was small print that essentially ensured that it made no money - over a period when the stock market went up over 50%!!:mad:

eskbanker

crispy_chris wrote: »

Not sure this is the right forum really.

To be fair the article does refer to "Products involved included critical illness and income protection cover, and investments such as share Isas" but yes, the piece could be posted in any number of boards really!

opinions4u

I think the irritant for me is that this is an incentive scheme implemented after the banks crashed in 2008.

They really didn't "get it", did they?

JohnRo

It begs the question, is this a fine or a bribe. Business as usual.

ceredigion

All this makes me wonder who is the most crooked.
the GOVERNMENT sets up the FCA which levies a fine that goes straight to the CHANCELLOR to do with what he sees fit. makes you wonder what the fine would have been if they did not see the £

eskbanker

opinions4u wrote: »

I think the irritant for me is that this is an incentive scheme implemented after the banks crashed in 2008.

They really didn't "get it", did they?

Not sure there's really much of a connection between the two - the credit-crunch bailouts were needed because of poor decisions about lending risk management and I'm unconvinced that this should automatically have led to an entire reappraisal of every aspect of a bank's operation in areas such as sales incentives? I know there is a popular view that the whole industry is corrupt and rotten from top to bottom and full of evil bankers out to screw the great British public at every opportunity, but it seems a bit much to expect that bailouts would directly lead to banks 'getting it' to the extent of suddenly becoming models of probity in all areas! Don't get me wrong, I'm not out to defend banks as such, just challenging the logic that this sort of thing should have been expected less post-2008!

David_e

eskbanker wrote: »

To be fair the article does refer to "Products involved included critical illness and income protection cover, and investments such as share Isas" but yes, the piece could be posted in any number of boards really!

Robert Peston made the point that if you were 'missold' a shares ISA or other equity related product in the last 3-4 years, you've probably actually done quite well as the stockmarket has risen strongly!

bobsbob

I think that this proves that having sales targets and incentives to sell in banks are unethical. The problem is that Management teams are scared that their commercial results will decline drastically if they remove them (along with their own career aspirations). But this approach is not working - anyone can see that paying an advisor to sell a product only to the have to pay out on it again when the Customer complains is madness - its all very short sighted for quick numbers on the sales board. Surely, the main target for any advisor should be purely about having a high quality, needs focused discussion with each Customer that is put in front of you and evidencing why a product is suitable. In the interim yes the sales might drop but so will the complaints and product cancellations. Its a longer term view but if Managers work with their advisor's to focus on 'doing the right thing' each time then over time the commercial results will be just fine. Unfortunately, this may take years as a lot of people in that world were recruited for their sales track record and motivation to earn money, compounded by the fact that some Manager's have an unquenchable thirst for numbers and instant success.