Lloyds chief wants penalties for false PPI claims

Antonio Horta-Osorio (pictured) has written to the Secretary of State for Justice, Chris Grayling, calling for a change in the law on who pays for processing claims sent via the Financial Ombudsman Service (FOS), reports The Telegraph. Under the current system, providers such as banks pick up the FOS's costs, whether they are found to have mis-sold or not. In Lloyds' case, it pays £850 for administering a claim to the Ombudsman. Last year, Horta-Osorio said a quarter of PPI cases reported to it turn out to be false. "It is fraud and I think we should stop that," he said.