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Lloyds appoints businessman to review HBOS fraud compensation claims
March 20, 2017 / 11:55 AM / in 8 months

Lloyds appoints businessman to review HBOS fraud compensation claims

LONDON (Reuters) - Lloyds Banking Group (LLOY.L) on Monday said it appointed a businessman to review the cases of British companies which lost out in a 245 million pound fraud for which six people were jailed earlier this year.

A woman uses a cash machine at a Lloyds Bank branch in central London, Britain February 25, 2016. REUTERS/Paul Hackett

Professor Russel Griggs will decide the outcome of customer cases and agree the scope and methodology of the review after considering relevant evidence and new details that emerged during the trial.

Lloyds has been under pressure to compensate victims of the fraud, who allege it reacted too slowly to their complaints.

The fraud involved two former bankers at HBOS, once Britain’s biggest mortgage lender, which was rescued in a state-engineered takeover by Lloyds in 2008. They helped siphon off money from struggling businesses which were HBOS clients.

“Griggs was selected for his experience in overseeing high profile reviews of a complex well as his track-record in ensuring the principles of fairness are followed,” the bank said in a statement.

Griggs previously led a review of protocol of branch closures for the British Bankers’ Association aimed at minimising the impact of closures.

The protocol was criticised by some politicians for failing to do enough to prevent lenders cutting their branch networks too fast, particularly in places where people are less able to fall back on digital banking services.

Reporting By Andrew MacAskill, Editing by Lawrence White

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