Lloyds' PPI mis-selling bill climbs to £6.8 billion

In total the group, which includes Lloyds TSB, Halifax and Bank of Scotland, has now set aside £6.8 billion since January 2011 to cover compensation for mis-selling PPI - the most of any bank.

The latest addition to the bill covers the last three months of 2012.

News of Lloyds' increased provision comes days after it was fined £4.3 million for massive delays in paying back mis-sold PPI (see Lloyds PPI fine MSE News story). 

The total paid out to victims across the banking industry since January 2011 is £8.4 billion, and is expected to reach £15 billion. Banks have asked the Financial Services Authority to set a deadline on PPI mis-selling claims, a proposition which Money Saving Expert strongly opposes (see Claim PPI now MSE News story).

Lloyds' PPI bill contributed to the group making a £570 million loss in 2012.

Yesterday, Royal Bank of Scotland announced it was allocating another £450 million to cover PPI claims, bringing its total to £2.2 billion. It posted losses of £5.2 billion for last year.