Lloyds is working to “fully compensate” bereaved families after it failed to pass on the wills of 9,000 deceased customers, leading to hundreds of families distributing assets to the wrong beneficiaries.
The bank said it is investigating each case individually and, where appropriate, making contact with representative of these estates. It added that it will ensure that those affected are “fully compensated” and no funds already distributed will be clawed back.
The wills had been stored as part of a “safe custody” service that was closed to new customers in 2011. The bank said that the vast majority of estates had been unaffected because the wills had been superseded or another copy had been kept elsewhere.
Despite that, it estimates that in hundreds of cases, assets were incorrectly distributed.
Lloyds emphasised that the “vast majority” of estates were distributed in line with the customers’ wishes.
The bank’s spokesperson added: “Up until 2011, the bank offered a safe custody service where customers could store important items. In a small proportion of cases, it’s become clear that we did not trace a customer’s will when we were notified of their passing.
“We are investigating each case individually and where appropriate making contact with representative of these estates. We are deeply sorry for the distress and inconvenience this has caused and will ensure that those affected are fully compensated.”