Lloyds Banking Group, Britain’s biggest high street bank, has indicated that it will foot the bill for compensation due to customers affected by the HBOS fraud.
Earlier this year HBOS manager Lynden Scourfield, former head of an impaired loans operation, and five other associates were handed down jail sentences totalling more than 47 years of fraud and corruption charges as a result of their involvement.
The scandal concerns the HBOS’ Reading division; it was found that Scourfield was in cohorts with a number of external parties, the most notable being debt consultancy Quayside Corporate Services (“QCS”) owned by David Mills, and conspired to pile unmanageable levels of debt on to customers thus forcing them to pay excessive fees for QCS services in the process.
Lloyds, whose rescue of HBOS took place during the 2008 financial crisis, have commissioned an independent third party review to identify those customers which may have been affected by the actions of Scourfield.
Lloyds has reportedly estimated the number of clients directly affected by the fraud amount to less than 50, but it has also invited any other businesses that believe they were hit to come forward, meaning the total number could be much higher. It is estimated that during the relevant period, 2003 and 2007, around 200 small business customers where struggling to repay their business loans.
The criminal activity has, thus far, forced Lloyds to write off £245 million of fraudulent loans. As well as a refund on direct losses suffered, i.e. a refund of any unreasonable fees paid, many victims may also wish to make a claim for payments relating to loss of opportunity and other consequential losses.
It is thought that compensation payouts for those affected could start as early as autumn.
Seneca Banking are at the forefront of winning compensation for businesses mistreated by the Banks. Seneca have previously recovered £2.75 million from claims relating to the mistreatment of SME’s in RBS’ Global Restructuring Group and have also recovered upwards of £100 million in total compensation for clients.
Seneca Banking have the ability to offer full support to customers who have suffered at the hands of the Banks.
If you are concerned about your treatment or have been affected by the conduct of the Banks and believe you have incurred losses as a result, we would like to hear from you. We can offer full guidance to help you receive the compensation you deserve.
If you think that you may have been affected, call us on 01204 322805 or through our contact form.