Lord Sugar in £10m ‘mis-selling’ complaint against Lloyds

Lord Sugar in £10m ‘mis-selling’ complaint against Lloyds

Lloyds, along with all of the UK’s other major lenders, including Barclays, HSBC and Royal Bank of Scotland, signed up in June 2012 to a redress scheme for victims.

Barclays has made by far the largest provision against swaps mis-selling, putting aside £1.5bn to compensate customers, while RBS has made a provision of £750m. Lloyds’ provision currently stands at £400m, slightly more than the $ 598m (£385m) put aside by HSBC.

However, more than a year on from setting up the compensation process, no money has been paid out.

The campaign for compensation has received the support of more than 50 MPs who have lobbied the Financial Services Authority and its successor body, the Financial Conduct Authority, to speed up the process.

The scheme itself has been criticised by victims groups, such as Bully Banks, and several experts have also pointed out potential problems with the redress process.

A judicial review of a controversial clause capping claims of more than £10m is currently under way.

Banks are also facing criticism over their handling of the related loss claims linked to mis-sold hedges. Many of those who have received compensation offers have been told their redress is subject to them reaching a settlement on their so-called “consequential loss” claims.

Lord Sugar is not eligible to join the FCA scheme.

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