Lloyds Banking Group scraps PPI sales

Lloyds Banking Group has stopped selling payment protection insurance across all five of its brands. A report on MoneySavingExpert.com reveals that Lloyds stopped selling PPI through its Lloyds TSB, Halifax, Bank of Scotland, Cheltenham & Gloucester and Black Horse brands with effect from July 23. Lloyds is instead offering customers a leaflet on PPI from the British Bankers’ Association. The bank has promised not to raise loan and credit card rates to replace the income it would have received from PPI sales. Existing customers who have taken out PPI policies with Lloyds will be unaffected. The bank will honour PPI applications on loans and credit cards until July 31, and on mortgages until November 20 but is no longer receiving new applications. A spokeswoman from Lloyds says: “Lloyds Banking Group has withdrawn its PPI products across all brands and channels. This move reflects the uncertainty around the regulation of PPI sales and processes. The group believes further changes in regulation will make it uneconomic to continue to offer these products in their current form. “Across all channels, on a phased basis from July 23 2010, policies will no longer be sold to new customers alongside Lloyds TSB, Halifax, Bank of Scotland, C&G and Black Horse personal loans, credit cards and mortgages. “The group will continue to offer a broad range of income protection, critical illness and life insurance to help meet customers’ protection needs.” The Competition Commission ruled in May that it would continue with its plans to ban point-of-sale PPI.

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Source: Money Marketing - 27th July 2010 27/07/2010

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