'Unacceptable' Lloyds hit with record £117m FCA fine over PPI

Lloyds Banking Group has been hit with a record £117m fine by the Financial Conduct Authority for mishandling of payment protection product complaints.

The firm was the biggest seller of PPI products, which was a major source of its profit, and has already set aside more than £11bn to pay compensation claims from customers who purchased such products. The £117m fine is the highest ever retail fine announced by the FCA, and dwarfs the previous highest PPI-related fine of £21m handed to Clydesdale Bank in April. The penalty relates to actions which took place between March 2012 and May 2013, during which time Lloyds assessed more than 2.3m PPI complaints. The bank told complaint handlers that their 'overriding principle' should be t...