MP attacks Lloyds over loan scam compensation

An MP on the Treasury Select Committee is writing to HBOS to express anger over the bank’s handling of a redress scheme for customers affected by a loan scam.

George Kerevan says it is unfair that the bank is in control of the compensation scheme.

In February HBOS bankers in Reading were sent to jail over a scam that saw small business clients lose their firms. Parent Lloyds Banking Group says it is looking into compensation claims.

George Kerevan, SNP MP for East Lothian, writes: “While meeting with affected clients, the bank has proceeded on its own accord to appoint an ‘independent adjudicator’ in advance of any consensus on a redress scheme …

“There is very strong feeling that a bank-appointed ‘independent third party’ is not acceptable to the victims, and certainly not one appointed by the bank without consultation.”

Lloyds last week appointed Scottish professor Russel Griggs to oversee the review into HBOS Reading.