Lloyds stops selling PPI
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Lloyds Banking Group has scrapped sales of all its Payment Protection Insurance products from last Friday.
The bank blames regulatory changes for making their current products “uneconomic”.
Policies will not be sold at Lloyds TSB, Halifax, Bank of Scotland, C&G and Black House personal loans, credit cards and mortgages.
PPI applications made for mortgages will be honoured until November 20.
A Lloyds statement says: “This move reflects the uncertainty around the regulation of PPI sales and processes. Lloyds believes further changes in regulation will make it uneconomic to continue to offer these products in their current form.”
The bank will honour its existing customers and continue with applications for personal credit cards and personal loans until July 31.
Peter Vicary-Smith, chief executive at Which?, says: “Lloyds decision to stop selling PPI is a huge victory for consumers. Hopefully other banks will follow suit and we’ll finally see the back of this poor protection product.
“Now it’s the beginning of the end for PPI, banks need to get back to the drawing board and offer their customers insurance products that actually protect them when they need it.”
Lloyds will continue to offer a broad range of income protection, critical illness and life Insurance.
