Lloyds Bank condemned over HBOS compensation hold-up (plus Noel Edmonds has now set up a Facebook page)

William Turvill
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Lloyds was aiming to complete the compensation process by the end of June (Source: Getty)

A small business group has slammed Lloyds Banking Group for being slow to compensate HBOS victims.

Lloyds, which has set aside £100m to pay out in compensation to 64 business victims the HBOS scandal, previously said it would aim to complete the process by the end of June. However, it has at this stage only agreed a compensation offer with one of the victims.

Mike Cherry, national chairman of the Federation of Small Businesses, said: “The fact that small business owners whose livelihoods were taken away by HBOS a decade ago are still waiting for compensation is simply unacceptable. Some of our members lost their businesses and have faced an uphill struggle to make their voices heard…

“Ten years is too long to wait for fair treatment. It’s time to give these entrepreneurs the support they’re due.”

Lloyds has come under a large amount of public pressure over the process, largely because TV presenter Noel Edmonds is one of the victims.

Edmonds, who is claiming £73m, set up a website counting down to the end of June at the end of May and now has a Facebook page dedicated to trolling the bank.

Read more: Noel Edmonds hits out at Lloyds Bank's HBOS review process

A Lloyds spokesman said: “As we said in our update on 26 April, the length of time required to assess each customer case will depend upon the individual situation and the amount of time customers require to provide their input.

“We anticipate making offers to customers by the end of June, where we have received their input. But we recognise that some customers may need more time, to provide input into the review, and we want them to take that time.

“Our focus is on swift, fair and appropriate compensation. Once we have received their information we will move as quickly as possible to compensation offers and rapid payment.”

Read more: Lloyds Bank has inked a huge deal outsourcing nearly 1,500 tech jobs to IBM

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