Lloyds accused of exploiting PPI ‘loophole’ to lower payouts

Mortgage Solutions | 25 Mar 2014 | 10:25

Adam Williams

Lloyds Banking Group has been accused of using a regulatory loophole to cut the amount of compensation it pays to customers mis-sold payment protection insurance (PPI), a BBC investigation has claimed.

Lloyds Banking Group logo

The BBC found the banking giant had been using a regulatory provision called “alternative redress” which allowed them to pay claimants a lower amount of compensation.

It was able to do this by presuming certain customers who had been mis-sold a premium PPI policy would have instead taken out another, cheaper PPI policy and subtracting this amount from the compensation paid.

PPI expert Cliff D’Arcy said Lloyds had saved more than £60m in the past year by lowering compensation in this way.

D’Arcy told BBC Radio 4: “Frankly I’m amazed that this problem has existed throughout the last year and hasn’t emerged into the light.”

“A taxpayer sponsored bank is depriving taxpayers of their rightful compensation by using a loophole. It’s a scandal coming out of a scandal,” he said.

Lloyds said in a statement it had offered the correct level of compensation in line with regulatory guidance.

“The numbers that have been provided to the BBC by the claims management companies, are incorrect and deeply misleading,” it said.

“Over 98% of upheld PPI claims have been paid with full redress. For less than 2% of claims, we have used a formula agreed with the FCA to offer comparative redress to customers.

“The FCA handbook is very clear that in these specific circumstances, the provider should give redress that puts the customer in the position they would have been in had the customer taken the regular premium policy.”


Romeo & Juliet Youth performance


Last night I was fortunate enough to be in the audience for the Stage Two youth performance of Romeo and Juliet. It was outstanding. Not only in the delivery of Will Shakespeare’s memorable dialogue but the confidence  the actors proclaimed all of whom are on the first step to such a successful adulthood.

I have been to many youth productions and what stands out for me is that the young actors are so sure of themselves without being overbearing. It takes a massive control of ones nerves, thoughts, mind and pure unwavering guts to walk the boards in front of an audience radiating easy to forget near abnormal Shakespeare verse. They absolutely succeeded. They have learned one of the fundamentals of life; how to sell yourself. Actors surely have to sell themselves to an audience. Failure to do this is failure for the play. We are all actors on a world stage. Whether you are a potato picker (not belittling potato pickers) or the CEO of a multinational corporation, we all act. We all need to sell ourselves. These young actors have learned this skill, at which conventional education fails dismally, at an evolutionary time in their lives and will continue to gather successes in whatever career they choose to follow on the pure back of this performance.

It is an incredible positive that stage schools such as Stage Two give our children this confidence building opportunity.

I do know that the Butter Market cost far outstretches the income received from the ticket sales and not by a short distance but by miles.

Why does Lucy, Stage Two director do it? No not to make money, that’s obvious, but to give these deserving, hardworking young people the incredible opportunity to display their individual and collective professional performing prowess to their peers.

You deserve the opportunity to see these very talented young people. They deserve your support.

You may think networking doesn’t work…………………

What is great about networking is that you always, always learn something new. Many times loads of something new. You meet friends as well as visitors to the meeting that suffer similar business problems to those you face. You find answers, suggestions, information, new ideas, old idea reminders. You name it it’s there. I really feel those who have “tried” networking and found they don’t get work from it are losing the point. It’s about getting out of your office, out of your business, out of your comfort zone, building self confidence and meeting people who do care about each other and want to see them move on in business and their personal lives. And along the way doing business with one another and our individual contacts. I can quite honestly say that near on 100% of my work comes from networking – some still originating to networking I did 15 years ago.
If you really want to know why networking will work for you, no matter the size or type of your business call me now to arrange a coffee. 01743 884495.


Networking for over 15 years I have noticed that most 40-60 seconds, whether scripted or not, are not really taken in unless there is something that catches one’s attention such as an unusual delivery or eye catching prop. This is especially so when it comes to listening to people you may know well over several meetings. The most important part of networking is talking to people one to one (121). This is where the effort should be targeted. Networking is all about meeting people, expanding your circle of contacts, understanding there business needs and finding a way to be of value toi them. Standing up in front of them for such a small amount of time does not give an audience the time to absorb you and your value to them. VALUE is the most important word when it comes to networking. The value you can be to the person you are talking to. The key is finding your value to other networkers. Through this they will get to know you, like you and trust you. That’s when the real business reveals itself. You cannot try networking – you have to do it. Do it again and again and again and again. And then repeat this. Then networking works.

More borrowers are in risk of losing their homes

Only 3 out of 100 people taking out new mortgages and 6 out of every 100 existing borrowers have financial cover to ensure their mortgage will continue to be paid if they become unemployed.

The statistic has come to light following a survey undertaken over the weekend – 1st and 2nd March – by online market research firm Usurv.

Last year over 1.26million loans were advanced to first-time buyers, those moving up the property ladder and people re-mortgaging their homes. 1.2 million of these could go into arrears.

Non-partisan UK think-tank ResPublica estimates around 96% of people with mortgages from UK lenders have no financial support mechanisms to pay bills in the event of a lost income and these latest survey findings confirm its fears.

Prior to the payment protection insurance mis-selling scandal, nearly 28% of homeowners with mortgages held a payment protection policy.

New Rules Bring New Delays

New Rules Bring New Delays

The time it takes to switch a mortgage or borrow more for home improvements could increase from next month, April. You may be surprised to learn that NEW Regulations will force lenders to offer advice before agreeing a new deal!

Yes they will be forced to offer ADVICE.

So what, you may well ask, have they been doing all this time? As long as they are only selling their own products and they have told you they are not giving you advice then they could show you some mortgage illustrations and ask you to choose the one you like best and then sign that you have accepted their illustration.

Mortgage Brokers however who are regulated have always been allowed to give advice, usually on the whole of the mortgage market.

From April 26th regulations under the Mortgage Market Review will ban “non-advised” mortgage sales.

Mortgage lenders will be forced to offer guidance from qualified mortgage advisors in order to comply with regulations.

Expect delays from the mortgage lenders as many may not have adequately trained and compliant advisors in place.

Whereas using an experienced, regulated and fully qualified advisor, such as myself, has always made sense and makes even more sense now. Getting advice on the whole of the mortgage market, not just those offered by a particular bank or building society, has to make sense, especially when the advice reflects your personal requirements not only now but for the future.

Ensure you use a regulated, qualified Independent Mortgage and Protection Advisor for advice on, probably, the biggest financial commitment of your life – buying your home.

An Outstanding Heart Wrenching Performance in Dance from my Daughter

On Friday I was privileged to attend a dance theatre performance in Liverpool. It was performed first as a dance, with no explanation as to what its subject was, with the audience then completing a questionnaire of their thoughts on what the dance basically portrayed. The two talented performers then did a monologue; one of the performers read the script which was in the form of a letter from a woman who had experienced her Mother being so much part of her life; childhood, adolescence, marriage, grandchildren and finally going through dementia and finally her Mother’s death. The other performer acted the part of the gradual decline of the Mother. This part of the performance – acting and script – was to say the least heart wrenching. To say there was not a dry eye in the house is no exaggeration. The two performers then repeated the dance at the end once again asking how the audience now how they saw/interpreted the performance. Most did understand the original dance portrayed a relationship with an eventual ending/death.

The whole presentation, script, dance was very clever and absolutely outstanding and with absolute empathy for their chosen subject. The two performers, who are in their final year at University, have set a massive precedent for the rest of the year’s cohort.

One of the performers was my daughter, Anouzka, the other her friend Laura. Their script was based on my Wife’s relationship and final loss of her Mother, Thelma from Dementia Lewy Bodies. As you can guess the performance hit my wife, Helen, very emotionally with me very close behind. The rest of the audience, unaware of the script relationship to my wife, followed close on our heels.

I, like all fathers, am so very proud of all my children. Every time I see my daughter on stage, whether dancing, singing or acting I am never dry eyed. This performance however hit me deep down so much so that just writing this brings me out in tears remembering the performance. These two very talented young ladies deserve all the success for the future and if this is a reflection on their incredible talents then both will go far in their chosen acting careers.

Thank you Anouzka and Laura