An independent contractor will be appointed to evaluate compensation to the victims of the HBOS scam states Lloyds banking group.
Last week Thursday, Lynden Scourfield and his five right hand men were sentenced to a combined 47 years behind bars. So it is of no great surprise that Lloyds are now making plans to compensate the victims of the scam.
Prior to the sentencing, the bank was skating around the issue, stating that they would be reviewing cases individually and assessing any new evidence from the trial. There was no mention of any type of independent review or compensation in their statement.
Throughout this entire shambles, Lloyds have been acting as if they were the only victims in the case. Forgetting about the small struggling businesses that were saddled with debts and fees because of this illegal activity.
There is no doubt that Lloyds was a victim, but they can’t place themselves in the same category as the HBOS borrowers. Despite the fact that the £245m fraud took place prior to the takeover, one of the number one principles associated with such a business transaction is that the buyer takes on the full responsibilities of the business whether good or bad.
The trial lasted for several months giving Lloyds ample opportunity to prepare a response that would satisfy the victims. The banks chief executive Antonio Horta-Osorio feels as if the way the bank has now been labelled is unfair. Providing immediate compensation will provide an opportunity to improve their tarnished reputation.
The HBOS scam was responsible for triggering the 2013 banking crisis. Lloyds has yet to recover and their future remains uncertain. Which is possibly one of the reasons why they are reluctant to administer compensation. They fear that it will take them further into debt.