LONDON, Feb 14 (Reuters) - The former chief executive ofBritain's biggest retail bank said the majority of insurancepolicies taken out on loans and mortgages were not mis-sold andblamed false claims for the rising compensation bill for banks.
Eric Daniels, chief executive of Lloyds between2003 and 2011, said banks had paid out on fraudulent claims fromcustomers who did not even have payment protection insurancebecause banks could not cope with the number of complaints.
"A fair number of bogus claims were paid out because thenumber of claims were so overwhelming that banks could notanalyse whether or not they were genuine or not," he told apanel of lawmakers on Thursday.