Fresh review of Lloyds payouts over HBOS fraud begins

Fresh review of Lloyds payouts over HBOS fraud begins

A retired High Court judge has been appointed to re-review compensation paid by Lloyds Banking Group <LLOY.L> to victims of one of Britain’s biggest banking scandals after an earlier review found victims were likely paid too little.

Lloyds has paid out more than 100 million pounds to 191 small business owners defrauded by its Halifax Bank of Scotland (HBOS) branch in Reading, England.

Six people were jailed in connection with the case in 2017.

Former judge David Foskett has been appointed to chair a panel to re-assess the claims, including direct and consequential losses resulting from the fraud, said Ross Cranston.

He was author of the previous review which concluded in December that the compensation scheme had “serious shortcomings”.

Foskett will be assisted by Philippa Hill of accountancy firm Grant Thornton and Andrew Hildebrand, a dispute resolution expert.

Lloyds welcomed the appointments and said it was committed to helping the review.

Source: Reuters UK Business, 03 April 2020

Reporting: Iain Withers; editing by Jason Neely

Copyright Lyonsdown Limited 2021

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