When will it end? Lloyds set to pay out another £500m for mis-sold PPI

And the bank performs below expectations

Lloyds Bank has set aside another £500m to compensate victims of payment protection insurance (PPI) mis-selling.

So far, banks have spent nearly £30bn compensating about 10 million customers and it seems claims are still coming in.

Since the start of the 1990s, PPI was sold with other financial products, such as credit cards, as a financial safety net to cover payments in the event of the customer being too ill to work, for example. However, some were sold to customers who didn’t need it or didn’t realise it was optional.

The Financial Conduct Authority is launching a consultation on putting a deadline on PPI claims, which is likely to be sometime after the spring of 2018.

Meanwhile, Lloyds posted a decline in underlying profit of £2bn in Q3 – 8% lower than the previous quarter and £100m less than analysts’ expectations.

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