Afternoon:
14°c
£300m bill for PPI switch at Lloyds TSB
12.12.08
Lloyds TSB today added to the woes of the banking sector as it said the switch from annual to monthly premiums on its payment protection insurance will cost it £300 million.
HBOS said likewise, but did not put a value on the loss of business. All banks are bound to fall into line ahead of the Competition Commission's final damning report on PPI next month.
In yet another hit, Lloyds said that its contribution to the Financial Services Compensation Scheme, which covers bust banks' savers to the tune of £50,000 each, will soar to £120 million this year. HBOS's will jump to £200 million.
