Insurance news confession by Lloyds reveals surprising flaws

Lloyds insurance news scandal
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The company has revealed considerable failures in terms of the way that complaints have been dealt with.

A recent insurance news release from Lloyds Banking Group has revealed that it has brought a contract with Deloitte to an end after issues were revealed in the way that the business services firm’s call center had been handling the complaints that were being made by customers regarding the loan policies that had been mis-sold.

This announcement was made following another that showed that the contracted phone agents were taught inappropriate procedures.

The Times, a British newspaper, had only just revealed the insurance news that the contractors that were employed by the biggest complaint handling unit at Lloyds had been trained specifically how to play the system, leading to harm the situation of the clients. Finally, Lloyds announced that it would had ended its contact with Deloitte, as of May, after having been made aware of those call center “issues”.

Lloyds insurance news scandalLloyds is being very careful with its insurance news, as it has already been coping with the aftermath of the mis-sold PPI policies.

The insurance news about Deloitte’s management of complaints regarding the payment protection insurance (PPI) policy mis-selling to Lloyds customers is only the latest in a scandal that doesn’t seem to want to find an end.

To date, Lloyds has already put aside £6.8 billion (approximately $10.6 billion) in order to ensure that it will be able to have adequate funds for compensating the customers who had been mis-sold the PPI policies. This is a larger amount than any other bank that was involved in the scandal, as it sold the largest number of policies.

The PPI policies were designed to provide loan carrying customers with protection against redundancy and sickness, but – as a swath of insurance news headlines have continued to reveal – they were frequently being sold to customers who didn’t want them, who didn’t need them, and in some cases to customers who had outright refused them.

The latest insurance news was revealed when an undercover Times reporter underwent the training required for becoming a complaint handler for the PPI mis-sales. He was repeatedly instructed by his trainers that some of the bank salesmen had faked PPI data on the loan sale agreements and therefore the handlers of the complaints should essentially turn a blind eye.

Lloyds released an insurance news statement about this discovery, saying that “Some of the comments made by trainers to the Times reporter are not endorsed by Lloyds Banking Group and we believe they do not reflect our high training standards or our policies.”

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