Problems at Lloyds’ PPI centre went on for months

Tim Wallace
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LLOYDS’ PPI complaints processing centre run by Deloitte had missed targets and had trouble retaining staff for at least six months before the bank realised there were problems at the unit, sources have told City A.M.

Payment protection insurance misselling claims are processed at several centres including Royal Mint Court in London which was run by Deloitte.

The bank said it became aware of problems, investigated and terminated the contract around a month ago, giving the deal to rival outsourcing firm Huntswood instead.

The problems came to light yesterday after a Times reporter went undercover as a complaints handler and found staff advised to reject claims on spurious grounds and ignore falsified information filed by salesmen.

And City A.M. has discovered that Deloitte’s unit had long been dogged by quality control problems, leading to delays for customers and rising costs.

An insider said the group missed targets last year. It was expected to accurately judge cases and give the right level of compensation in 95 per cent of cases – but a source told City A.M. it was often less than half that level.

Lloyds had sent teams in to review the processes and we worried the contract could be terminated at any time,” the insider said. And the unit had trouble training and keeping staff.

“Staff turnover was very high – someone could be told they were doing well on the Monday and be fired for mistakes by the Wednesday,” they said.

Lloyds has promised to make changes.

“Earlier this year we became aware of issues at a PPI complaints handling centre. Following further investigations we took immediate action, and in May concluded our contract with Deloitte and moved to a new supplier,” the bank said. “Under the guidance of a new supplier the employees are currently undergoing re-training.”

Deloitte said: “In processing claims in accordance with Lloyds’ policies and procedures, we provided a high level of service throughout the period.”