And finally…Lloyds awards customer 3p cheque in PPI compensation

3pLloyds Banking Group has been forced to defend its decision to award a former customer just 3p in payment protection insurance (PPI) compensation.

The still partly taxpayer-owned lender has insisted that it followed industry guidelines in awarding journalist Bob Haywood the tiny sum after he lodged a claim against the PPI he held between 2005 and 2007.

Mr Haywood said that he now intends to frame his compensation cheque as “a symbol of pointlessness”.

Last week, the Financial Conduct Authority (FCA) issued its largest ever retail fine to Edinburgh-based Lloyds for failing to treat their customers fairly when handling PPI complaints.

Mr Haywood, a reporter with the Birmingham-based Sunday Mercury, wrote in the newspaper: “I never expected to make a fortune. But I honestly thought I might be offered more – quite a bit more.”

He added: “To make a farcical situation even more comic, I was told that the 3p was taxable and that I owed Her Majesty’s Revenue and Customs the princely sum of 0.015p.”

In a statement, Lloyds Banking Group said: “We remain committed to resolving PPI complaints and treating our customers fairly to ensure that they haven’t lost out.”

Mr Haywood was told that the payment related to PPI on credit cards between 2005 and 2007, and the low payout was explained as being due to a zero balance on his cards, meaning PPI premiums were not debited.

A few days after a letter arrived outlining his paltry claims award, he was sent a cheque for 3p.

“I won’t be cashing it”, Mr Haywood said. “I’ll frame it as a symbol of pointlessness, a total waste of time and as an epitaph to Britain’s barmy banking industry.”