Lloyds Banking Group expects to spend more money on claims from customers to whom credit insurance policies were wrongly sold in the past. Lloyds is terminating its share buyback program due to expected claims.

A number of British banks sold PPI insurance policies between 1990 and 2010. Policyholders are thus assured that loans are paid off if they cannot pay off their debts themselves, for example due to illness or dismissal. The financial services provider expects to put another 1.2 billion to 1.8 billion pounds aside in the third quarter for the issue.

Banks went beyond the boundaries when selling part of these insurance policies. For example, in certain cases, customers were not told at all that they had taken out such insurance with credit card subscriptions. In other cases, bank employees incorrectly stated that the insurance was mandatory when taking out a loan.

Lloyds previously set aside hundreds of millions of pounds for claims. From an increase in the number of requests for information and complaints in August, the bank now concludes that this will not be enough.

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