LONDON (Reuters) – Britain's financial regulator fined Lloyds Banking Group 4.3 million pounds ($6.7 million) on Monday for not paying compensation quickly enough to customers wrongly sold insurance on loans and mortgages.
The Financial Services Authority said that from May 2011 to March 2012, Lloyds did not pay compensation to 140,000 customers mis-sold payment protection insurance (PPI) within a deadline of 28 days after notifying them they were due a payment.
Britain's banks have set aside more than 12 billion pounds to compensate customers wrongly sold policies meant to protect borrowers who lost jobs or became ill, and Lloyds has made a provision of 5.3 billion pounds, the highest of any bank.
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