FCA investigating Lloyds mortgage arrears handling

Ryan Fowler

July 28, 2016

lloyds banking group building london skyscraper

The Financial Conduct Authority is investigating Lloyds Banking Group in relation to its mortgage arrears handling. 

In its half year results the bank said: “In May, the FCA informed the group that it was commencing an investigation in connection with the group’s mortgage arrears handling. At this stage it is not possible to make an assessment of the outcome of this ongoing review.”

It also confirmed that it had £460m to cover a range of conduct issues. For the half-year this included £215m in for arrears related activities on secured and unsecured retail products.

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A spokesperson for Lloyds Banking Group confirmed that an investigation was underway but would not elaborate on the exact nature of the issue.

He said: “We were notified by the FCA that we were under investigation regarding mortgage arrears issues in May 2016. I’m afraid I can’t comment further as this is a confidential investigation.”

When asked about the scope of the problem an FCA spokesperson said the regulator “does not comment on ongoing investigations”.