Company - - Feb 08,2017
Lloyds Banking Group, the holder of HBOS, is going to review the cases of customer hampered by a fraud involving two ex-employees who were imprisoned last week.
The bank has been put under pressure to offer reparation after it was accused of responding too slowly to complaints from sufferers of the scheme.
The fraud involved six people, including the former HBOS bankers, who were found guilty involving fraudulent loans.
The scam occurred before Lloyds Banking Group acquired ownership of HBOS.
Lloyds issued a statement saying, HBOS customer cases will be measured afresh keeping a bright focus on “all relevant evidence including new evidence that emerged during the trial”.
The statement also mentioned that the group deeply regrets the unlawful actions have caused such misery for a number of HBOS business customers.
It was clearly clarified in the statement that Lloyds would be appointing an autonomous third party as part of the review and together will be agreeing on the individual outcomes.
Lloyds Banking Group would be contacting all those customers which they have recognized as potentially affected by the criminal actions and provide reimbursement if appropriate.
As part of the statement, all such customers will be contacted proactively, any customer who considers they may have been disturbed can also raise concerns directly with LBG.
According to sources close to the investigation, the total value of the fraud might be close to £1bn.
Joanne Dove, a member of HBOS Reading Action Group said: “A number of us have already started actions against the bank and that will continue”. Ms. Dove faced a loss of millions through her nappy service firm as a consequence of this fraud.
She further added, it would have been far better if the bank simply admitted a fraud had occurred and accepted responsibility to finally negotiate with the victims; appointing a needless third-party consultant will invite more expense and would possibly cause huge delays in approving compensation.