Lloyds Banking Group was warned by the City watchdog five years ago that there had been a risk of “potential fraud” at HBOS’ Reading office, it has emerged.
Bankers at HBOS had uncovered a “potential fraud” in its corporate division by March 2007, a report by the City regulator suggests, providing fresh evidence that there was a cover-up of a scam that ruined the livelihoods of scores of small business owners.
Lloyds Banking Group has issued one-off £35,000 payments to victims of the fraud in its HBOS Reading branch after missing Friday’s deadline to make offers to the small business customers caught up in the scandal.
Lloyds Banking Group is set to miss an end-June deadline for offering compensation to victims of one of Britain’s largest fraud cases, the latest delay in a decade-long struggle by business owners for redress.
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The £1 billion HBOS Reading fraud, my part in exposing it, and what it tells us about the state of British banking
Lloyds, HBOS’s owner, has dismissed a report in the Sunday Times about its handling of the affair, and says it is focussed on compensating victims
Banking has been a closed shop for too long. Most people open a current account when they are young and never move. That relationship, with all its valuable information, is hoarded by a single institution that seems to think customer service is about what the client can do for its bottom line.
Hell hath no fury like a customer scorned. Just ask Lloyds.
Victims of the HBOS Reading scandal have called for the resignation of the head of the compensation scheme after it emerged that he has indirect business connections with the fraudster who ran the scam.