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

opinions4u

eskbanker wrote: »

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!

This specific incentive appears to have been along the lines of the old Allied Dunbar sales model. Lloyds can't say they weren't aware of investment mis-selling from others driven by incentive schemes.

I take the point in your post. But they knew exactly what they were doing when they implemented this.

Thrugelmir

opinions4u wrote: »

This specific incentive appears to have been along the lines of the old Allied Dunbar sales model.

Allied Crowbars products were on a different planet in terms of fee structure. Absolutely horrendous.

jamesd

Pretty pointless to put this in this section: almost all ISA customers affected will be due no redress at all because markets have improved. But in the insurance side, there is potential loss and potential redress, so there's a good deal more value to discuss there.

Lloyds will be contacting those most likely to have suffered a loss first, so no need to worry if you're not contacted quickly, it's more good news than bad.

bexhill

lloyds miss selling goes back to the 1980's when we bank clerks had to become salesmen. As a cashier I was supposed to sell anything from a credit card to a pension plan to customers as they came in to perhaps cash a cheque or pay in. My pay increments were affected by the number of "services" sold. As a believer in giving good old fashioned proper service my pay suffered and on being offered early retirement was happy to leave a career which I felt had lost creditability and honour.

dunstonh

lloyds miss selling goes back to the 1980's when we bank clerks had to become salesmen.

I would say mid 90s onwards on the regulated side and early 90s on the non-regulated. In the 80s, they didnt use bank staff. They started on the regulated side early 90s but by around 1997, they started using normal bank staff to do the advisory roles in addition to their normal roles and the quality of the training and supervision as well as the understanding fell down fast. It tied in with the TSB merger as TSB figures showed they sold more per customer than Lloyds. I would love to see Lloyds return to its pre TSB ways.

As a cashier I was supposed to sell anything from a credit card to a pension plan

A pension required regulatory permissions, qualifications and an advice process. I have never known a cashier have those things. You must have been at a tiny branch. In my experience the cashiers were targeted with credit cards and appointments mainly. It wasnt heavy targeting though until the 90s.

Johnc2994

Does anyone know if Lloyds have been pulled up for mis selling Home and contents insurance?

I just did a comparison for new insurance and found that i am paying Lloyds £600 more a year than i need to based on their advise. the new insurance quote i got online is from the Lloyds and covers everything i need even with no excess on Home or Contents and accidental damage its still £600 cheaper.
my Question again Can i get a claim for being missold and if so where do i go to find out how?

dunstonh

Does anyone know if Lloyds have been pulled up for mis selling Home and contents insurance?

No

I just did a comparison for new insurance and found that i am paying Lloyds £600 more a year than i need to based on their advise.

price is not grounds for mis-selling

the new insurance quote i got online is from the Lloyds and covers everything i need even with no excess on Home or Contents and accidental damage its still £600 cheaper.

Products change over the years and you need to keep checking them to make sure you dont get left behind

my Question again Can i get a claim for being missold and if so where do i go to find out how?

You havent been mis-sold. They told you their price and you accepted that price when you renewed.

masonic

Johnc2994 wrote: »

my Question again Can i get a claim for being missold and if so where do i go to find out how?

Did you know many retailers will allow customers to haggle and get a better price for goods and services? That doesn't mean those who have paid more have been missold. A renewal quote is just an opening offer.