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Lloyds Banking Group is to repay nearly £300m to about 600,000 customers over failings in the way it applied mortgage arrears policies, in the latest scandal to hit the UK’s biggest high street lender. Sky News has learnt that Lloyds will unveil a customer contact and remediation programme on Thursday alongside half-year results that will also be blighted by a bigger-than-expected provision for mis-selling payment protection insurance (PPI). Sources said that the redress scheme would cost Lloyds just under £300m, with more than £50m also set aside to cover administrative costs. The issue is understood to centre on the way Lloyds applied policies relating to financial difficulty assessments, leading to some customers being charged in error between 2009 and 2016. https://uk.news.yahoo.com/lloyds-repay-300m-customers-over-mortgage-arrears-errors-173400189.html
Royal Bank of Scotland could be fined up to £300m later this year to settle allegations traders sought to manipulate the libor interest rate, according to reports. The British bank is said to be in talks with the Financial Services Authority in the UK and the Department of Justice and the Commodity Futures Trading Commission in the US, The Financial Times reported. Stephen Hester, the chief executive of RBS, warned in the summer that the state-owned bank was one of several global lenders being investigated over the alleged manipulation of an interest rate used as the benchmark for billions of pounds of loans each day. “RBS is one of the banks tied up in Libor. We’ll have our day in that particular spotlight,” Mr Hester said in July. The bank, in which the taxpayer still owns an 82pc stake, has confirmed the dismissal of several employees in connection to the Libor manipulation claims. RBS is also battling a claim for wrongful dismissal from a former trader in Singapore who alleges that RBS's own libor submissions were manipulated. The £290m settlement that Barclays reached over similar allegations in June ultimately triggered the departure of the bank's senior management. More: http://www.telegraph.co.uk/finance/libor-scandal/9529756/RBS-could-be-fined-300m-to-settle-Libor-probe.html
ukaviator posted a topic in Bank Charges and the Finance Industry in the media..Royal Bank of Scotland (RBS) will on Friday outline a financial hit of about £300m from its role in the industry's spate of mis-selling scandals and the IT meltdown which left millions of customers unable to access their money. I have learned that RBS will say in its half-year results that it is increasing its provision for compensating customers who bought payment protection insurance (PPI) from the bank by about £130m. That increase will take the total impact of the scandal to date for the state-backed lender to close to £1.2bn. Unlike some rivals, however, RBS will not make a significant provision for compensating the victims of interest rate swaps mis-selling. Bankers tell me that RBS will set aside just under £50m for that, versus a much larger sum of £450m announced last week by Barclays. Insiders said that the discrepancy - given that RBS also had a big share of that market - was due to differences in the way the banks were deciding to account for the potential cost of providing redress to customers. The more interesting figure in RBS' numbers will relate to the cost of its IT meltdown in June. I'm told that the bank, which is 82% owned by the taxpayer, will say it is setting aside about £125m to compensate customers and improve its IT systems. The Financial Times has reported that Cabinet ministers are discussing the possibility of fully nationalising RBS. Insiders dismissed the prospect of such an event taking place. RBS declined to comment. Link; http://news.sky.com/story/968099/exclusive-rbs-faces-300m-hit