Banks' PPI deadline talks collapse Lloyds, which is 39pc owned by the state, has set aside more money than any other bank to compensate customers mis-sold PPI with its current provision standing at £6.7bn. According to a reporter who worked undercover at a Lloyds complaints handling centre run for the bank by Deloitte, staff there were told some signatures on customer loan agreements had been forged, but the majority of PPI complainants would give up if their claims were rejected first time around. In a statement, Lloyds said it had become "aware of issues" at the Royal Mint Court complaints centre earlier this year and confirmed that its contract with Deloitte had been "concluded" last month. The bank added: "Some of the comments made by trainers to The Times reporter are not endorsed by Lloyds Banking Group and we believe they do not reflect our high training standards or our policies. Following the discovery of these issues and under the guidance of a new supplier the employees are currently undergoing retraining in line with our policies and procedures. Lloyds has so far paid out £4.3bn in compensation to 1.3m customers mis-sold PPI policies. Antonio Horta-Osorio, chief executive of Lloyds, prompted the multi-billion payout after he dropped the bank's support for a BBA-led attempt to legally challenge PPI payouts. Mr Horta-Osorio's move led to all the UK's other major banks removing their backing for the legal challenge and beginning to compensate customers. Since then, lenders have put aside about £12bn against PPI claims, but it is thought that this figure could increase. Natalie Ceeney, chief executive of the Financial Ombudsman Service, claimed last month that only 10pc of customers ever sold a PPI policy had so far made a claim for compensation. Ms Ceeney criticised the banks for "demonising customers" and said the ombudsman would be hiring a further 1,000 staff in the next six months to help deal with PPI claims.