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Couple agree compensation from bank

Lloyds reaches settlement with fraud victims

Lloyds Banking Group has reached a settlement with a couple who helped uncover one of Britain’s biggest financial frauds.

Criminal convictions were achieved on the back of the revelations of misbehaviour by bankers working for HBOS in Reading who were accused of destroying their publishing business.

Neither Lloyds nor Paul and Nikki Turner disclosed the terms of the out of court agreement.

In a joint statement, they said: “Lloyds Banking Group is sorry for the significant personal distress the Turners have suffered and acknowledges their vital role, over more than a decade, campaigning tirelessly for justice for all the victims of the criminal conduct at HBOS Reading Impaired Assets Office.”

Mrs Turner said earlier this year: “They defrauded us, denied for 10 years that the fraud had happened, ignored the debt from the fraud and tried to evict us 22 times in order to cover up the fraud.”

Lloyds has so far paid out more than £29m in compensation to about half of the 63 businesses affected by the scandal.

The television presenter Noel Edmonds is seeking significant financial redress from the bank and is set to commence legal proceedings imminently.

In a separate move, the Financial Reporting Council has been admitted to weaknesses in its monitoring of HBOS.

In September, the FRC cleared accountancy firm KPMG of misconduct in relation to its audit of HBOS’s financial results in the run-up to its collapse.

At the request of the Treasury Select Committee the FRC has published a report into its findings.

The FRC concedes it failed to proactively investigate the audit of HBOS’s figures and relied too heavily on information provided by UK banking regulators.

“It was not right to regard them as the lead regulator in relation to audit. We should have adopted a more proactive role and acted more quickly,” it admitted.

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