February 14, 2013 / 10:51 AM / in 5 years

Ex-Lloyds Bank CEO defends sale of PPI policies

LONDON, Feb 14 (Reuters) - 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.

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