Lloyds bank is in the headlines this week for a number of reasons, including its joint Christmas TV ad with Apple Pay, and accompanying social media campaign utilising #loveyoutothestars which has been critically acclaimed.
There are, however a number of issues being faced by the bank that are less filled with festive cheer.
The Lloyds Trade Union has released research which suggests that half of staff feel pressured to sell products like loans and credit cards, and 53% felt they were judged solely on sales. The old fashioned sales model that focuses on high pressure sales over
the right solution for the customer is an issue many felt was confined to the past, but an alarming 55% of staff felt this was the way the bank was moving towards, not away from.
In a move away from an outdated sales heavy approach, the bank set out ‘activity targets’, requiring staff to meet with 25 customers per week. This new target is soon to be scrapped however, as staff filled their time meeting customers with basic needs, leaving
those with more complex needs like mortgages to wait for appointments in order to ensure targets are met.
Last week it emerged that the government’s deadline for selling off its stake in the bank would be delayed from December 2015 to June 2016. Share prices in the bank are not performing well as increasingly the costs of addressing wrongdoing in the past need
to be paid.
In 2012, berg became aware that Lloyds, like RBS appeared to be engineering defaults of lending facilities where the loans were based on commercial real estate. In our
2015 Banking Report, we explored the issue in more detail and found from the experience of our clients that engineering defaults in this way had been a practice used by the bank many times.
The government once owned 43% of the Lloyds at the peak of the bailout, but this has fallen to 9% as shares have been sold off. The remaining 9% is due to be sold off between now and June and the government have reinforced its commitment to offering a discount
to investors and ensuring the shares are sold.
With just 55% of staff feeling that the bank provided a good service to its customers, and the shares failing to sell as quickly as the government would like, it’s clear that the public don’t yet #lovelloydstothestars
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(The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by berg or any of its partners or employees. Professional legal advice should
be obtained before taking, or refraining from taking, any action as a result of this article.)