Foundation's legal action against bank

A CHARITY has launched a legal action in an attempt to get £3.5 million it claims it is owed from a bank.

Lloyds TSB Foundation for Scotland, which provides grants for other charities across the country, said a summons had been served on Lloyds Banking Group yesterday.

The foundation receives cash from Lloyds Banking Group in a deal going back 25 years.

But Mary Craig, chief executive of Lloyds TSB Foundation for Scotland, said the organisation was due more than 3.5 million this year, not the 38,920 they received.

The agreement, or "covenant", is based on the foundation receiving a share of one per cent of the banking group's pre-tax profits, averaged over a three-year period.

Ms Craig said Lloyds Banking Group had not "responded or paid" the 3.5 million by a deadline, prompting the legal action.

A spokesman for Lloyds Banking Group said: "We are aware of this but are unable to comment."