LLOYDS Banking Group has admitted to "shortcomings" in the handling of PPI complaints.
An undercover reporter at the Times said that staff at one of the bank’s complaints handling centres had been taught to “play the system”.
The reporter said that he was told to ignore fraud by Lloyds salesmen and that most claimaints would give up if rejected the first time.
Payment protection insurance (PPI), which is designed to cover loan repayments for policyholders in the case of illness or job loss, was mis-sold on a massive scale by a number of banks.
"Earlier this year we became aware of issues at a PPI complaints handling centre called Royal Mint Court in central London," said Lloyds.
"This site was operated for us by a third party supplier, Deloitte. Following further investigations we took immediate action, and in May concluded our contract with Deloitte and moved to a new supplier.
"Some of the comments made by trainers to the Times reporter are not endorsed by Lloyds Banking Group and we believe they do not reflect our high training standards or our policies.
"We believe the comments to be isolated and they are now being addressed. Following the discovery of these issues and under the guidance of a new supplier the employees are currently undergoing retraining in line with our policies and procedures."