Lloyds to pay out over PPI

Lloyds Banking Group has set aside £3.2bn to pay compensation to customers who were mis-sold payment protection insurance (PPI).

The bank is inviting past purchasers of PPI to get in contact and lodge a claim for compensation if they think they were mis-sold the policies.

Richard Lloyd is director of the consumer watchdog Which? and he says 'banks should make it easier for consumers'.