Monday 22 January 2018

Lloyds to carry out review into customers who fell victim to HBOS fraud


Ben Woods

Lloyds Banking Group said it will carry out a review and decide whether to pay out compensation to business customers who became victims of fraud at the hands of former HBOS staff.

The bank said it will asses "all customer cases" which may have been affected by "criminal activities" linked to the former Halifax Bank of Scotland (HBOS) impaired assets office in Reading.

It comes after a group of corrupt financiers who carried out a £245 million loans scam and squandered the profits on high-end prostitutes and luxury holidays were jailed on Thursday.

Consultant David Mills, 60, bribed HBOS manager Lynden Scourfield, 54, with designer goods, sex parties and "boys' jollies" to exotic locations.

The perks were a reward in exchange for loans which allowed Mills and his associates to profit from high consultancy fees.

In a statement, Lloyds said: "Customer cases will be considered afresh in light of all relevant evidence including new evidence that emerged during the trial.

"Since the investigation began in 2010, it was important that the group did not do or say anything that could subsequently prejudice the trial.

"The group deeply regrets that the criminal actions have caused such distress for a number of HBOS business customers."

Press Association

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