UK officials fine Lloyds $180 million for dealing with payment protection complaints unfairly

LONDON – British regulatory authorities have fined Lloyds 117 million pounds ($180 million) for treating customers unfairly in dealing with complaints on payment protection insurance.

The Financial Conduct Authority says the fine levied Friday on Lloyds Bank, Bank of Scotland and Black Horse was its largest retail fine ever. The authority says that between March 2012 and May 2013, Lloyds rejected 37 per cent of customer complaints relating to 2.3 million policies.

Lloyds has apologized and qualified for a discount for settling early.

The FCA’s Georgina Philippou says the size of the fine “reflects the fact that so many complaints were mishandled by Lloyds.”

The authority says Lloyds has made significant progress and has established a remediation program. Those affected and due redress are being contacted directly.