However, it is blamed on Deloitte.
In a week when MPs and Lords are finalising a report on how to improve standards in banking, it is embarrassing for Lloyds that it has been accused of failing to show due care when processing complaints from customers who say they were miss-sold PPI credit insurance.
A reporter from the Times newspaper who went undercover at one of Lloyds' complaints handling centres, Royal Mint Court in London, says he was nudged to ignore possible fraud by Lloyds salesmen and also steered that most complainants would give up if rejected first time.
Lloyds insists that independently of the investigation it identified shortcomings - or what it calls "issues" - in the complaints handling centre, which is one of eight it operates. In fact it says it already had concerns by around February this year, before the Times reporter signed up for a job there, and it was taking a look at procedures. But it rather begs the question why it has taken many weeks for Lloyds to get to the bottom of what was going on and take action.
The centre was operated for Lloyds by the leading accounting firm, Deloitte. Lloyds said it terminated its contract with Deloitte in May and is retraining relevant staff.
All banks have paid out far more in PPI compensation than they initially expected - and Lloyds is by far the biggest compensation payer. Lloyds says it has no evidence of shortcomings at its seven other complaints handling centres.