Update on HBOS Reading Customer Reviews and Appointment of Independent Legal Expert
26 April 2017
Following conclusion of the HBOS Reading fraud trial, Lloyds Banking Group (LBG) has been working actively to provide fair, swift and appropriate compensation for the victims of the HBOS Reading fraud.
LBG is working at pace with Professor Griggs OBE, the Independent Reviewer appointed in consultation with the FCA, to ensure appropriate redress is provided to impacted customers and LBG announced on 7 April a £100 million provision for estimated compensation to 64 customers. Professor Griggs has now formally commenced the review and has begun seeking customer input, which is a critical step in the process.
It is LBG and the Independent Reviewer’s intention to begin making compensation offers from late May onwards. It is anticipated that by the end of June victims who have confirmed their participation in the review will have received compensation offers.
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.
Review By An Independent Legal Expert
LBG has appointed Dame Linda Dobbs as the independent legal expert to consider whether the issues relating to HBOS Reading were investigated and appropriately reported to authorities at the time by LBG, following its acquisition of HBOS.
Dame Linda, a retired High Court Judge, has been selected for her considerable experience of working on fraud cases and track record of chairing enquiries. This independent assessment will cover the period following HBOS’s acquisition by LBG, in January 2009, through to the conclusion of the criminal trial on 30 January 2017.
Once this independent review has completed, its findings will be shared with the FCA. The FCA has already confirmed that its own investigation into the events surrounding the discovery of misconduct within the HBOS Reading Impaired Assets office has recommenced.