Lloyds scraps PPI sales - July 2010
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.
MoneySavingExpert.com creator Martin Lewis says: “This is a quite astonishing move. This insurance, which has been scandalously mis-sold for years leaving many consumers in misery, is estimated to be worth up to £5bn a year for the industry.
“We hope the other big banks follow suit.”
The Competition Commission ruled in May that it would continue with its plans to ban point-of-sale PPI.
Source: moneymarketing.co.uk
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