Whistleblower hotline (01326) 560229

The fraudsters used the proceeds of their crime to fund a holiday to Barbados and buy a 100ft yacht

The Times

Lloyds has agreed to an independent review of its contentious compensation scheme for victims of the £1 billion HBOS Reading fraud after criticism of the original process.

The fresh scrutiny is a result of intervention by the Financial Conduct Authority, which shared concerns expressed by small business owners affected by the fraud that the redress process was flawed and may have given rise to unfair outcomes.

It heaps further embarrassment on Lloyds over the Reading scandal, which resulted in scores of small companies being ruined. Sir Ross Cranston, 70, a law professor and retired High Court judge, is due to review the bank’s compensation decisions.