LONDON Feb 14 The former chief executive of
Britain's biggest retail bank said the majority of insurance
policies taken out on loans and mortgages were not mis-sold and
blamed false claims for the rising compensation bill for banks.
Eric Daniels, chief executive of Lloyds between
2003 and 2011, said banks had paid out on fraudulent claims from
customers who did not even have payment protection insurance
because banks could not cope with the number of complaints.
"A fair number of bogus claims were paid out because the
number of claims were so overwhelming that banks could not
analyse whether or not they were genuine or not," he told a
panel of lawmakers on Thursday.