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Lloyds appoints reviewer to £250m corruption scandal

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  • 21/03/2017
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Lloyds appoints reviewer to £250m corruption scandal
Lloyds Banking Group has appointed an independent reviewer to reconsider customer complaints following the £250m corruption scandal which saw two former HBOS employees jailed.

The bank has chosen Professor Russel Griggs to oversee the review process, which it announced following pressure from MPs.

It added that it had consulted the Financial Conduct Authority about the position.

The criminal trial covering the scam concluded last month when a former HBOS senior manager was jailed for 11 years after he was exposed for receiving bribes in the form of cash, holidays and sex parties in return for referring struggling customers to a corrupt consultant.

The business customers, already in financial turmoil, were advanced large sums of cash which they could not afford to repay, while the perpetrators and associates received significant fees.

 

‘Ensure fair outcomes’

Lloyds said Professor Griggs’ role will be to agree the scope, methodology and individual case outcomes of the review in order to ensure fair outcomes and that the review is undertaken effectively.

It said he was “selected for his experience in overseeing high profile reviews of a complex nature and for his clear understanding of SME businesses, as well as his track-record in ensuring the principles of fairness are followed in a number of joint government, banking and industry initiatives”.

Lloyds has written to the majority of customers identified as having been affected and they and others who have raised concerns will be considered for inclusion in this review.

The bank added that it was holding informal meetings with customers, providing an opportunity to hear direct from them and to listen to their views on the planned review.

The FCA reiterated its statement when the review was first announced last month, that it welcomed the announcement.

“While the FCA still needs to see further detail about how the scheme will operate, we believe that it is an important step for LBG to put in place an appropriate review process,” a spokesman said.

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