According to Sky News, Lloyds is close to a settlement with the FCA, which could be announced as early as tomorrow.
Last month, the regulator fined Clydesdale Bank £20,678,300 for "serious failings" in its PPI complaint handling processes, which is currently the largest ever fine imposed by the FCA for PPI failings.
Clydesdale was found to have misled the Financial Ombudsman by providing false information, which was reflected in the size of the fine.
However the Lloyds fine is rumoured to be the largest ever relating to PPI mis-selling due to the sheer volume of mishandling complaints rumoured to have taken place at the bank.
Lloyds had by far the biggest market share in PPI products, and has set aside more than £12bn to date to deal with PPI claims.
Last month, the FCA imposed its largest ever penalty of £284,432,000 on Barclays for failing to control business practices in its foreign exchange business in London.
More to follow...
