Lloyds Bank is today facing fresh PPI costs of up to £1.8bn to cover last-minute Payment Protection Insurance (PPI) claims.
Ahead of the national August 29th deadline to make a claim, the bank saw a large spike in claims and calls regarding PPI. In the final week, Lloyds received over 600,000 claims.
PPI was initially designed to cover personal loan repayments if borrowers fell ill, lost their job or were unable to work, but millions were sold to people who did not want or need them.
Lloyds claim that the PPI bill could be between £1.2-£1.8bn, and also revealed that they would be suspending their share buyback plan because of the uncertainty and issues surrounding the insurance.