In the wake of the fraud at HBOS Reading, Lloyds Banking Group has announced it has appointed an independent review to oversee potential compensation pay-outs to victims.
Professor Russel Griggs who has overseen previous reviews into the banking industry was appointed after consultation with the Financial Conduct Authority; his appointment comes as part of Lloyds’ commitment to review the cases of victims of the Reading scandal.
The £245m scam involved HBOS bankers and consultants working together to seize control of businesses and line their own pockets in the process leaving many victims penniless.
The announcement comes several weeks after the convictions during which time Lloyds has failed to contact victims. Speaking to the Times Anthony Stansfield, Thames Valley police and crime commissioner alleged that Lloyds had attempted to cover up the crime having failed repeatedly failing to deal with the wrongdoing which it learnt about after the purchase of the bank in 2008. The bank has said it wants to achieve outcomes as quickly as possible but has given no detail on timing.
Victim Nikki Turner whose music publishing business was ruined by the fraud was quoted in The Times saying “ Seven weeks after the criminal trials finished and over seven months since Lyndon Scourfield pleaded guilty many victims have not even been contacted. The bank are focused on a review which will not be timely, risks causing further distress for the victims and will be primarily concerned with protecting the bank’s position”
If you have been a victim of HBOS fraud, our nationally renowned Banking Litigation team understands the key issues and is ready to act. Having represented many HBOS and Lloyds customers we have already recovered over £100m for clients to date. Talk to us today on 44 (0) 161 829 2599.
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