Lloyds stops selling PPI over regulation concerns
Share
Lloyds Banking Group has stopped selling payment protection insurance across all five of its brands, saying it was “uneconomic” to continue selling the product given the uncertainty over future regulation.
Lloyds stopped selling PPI through its Lloyds TSB, Halifax, Bank of Scotland, Cheltenham & Gloucester and Black Horse brands on July 23.
Lloyds is instead offering customers a leaflet on payment protection from the British Ban-kers’ Association. Existing customers who have taken out PPI policies with Lloyds will be unaffected. The bank will honour PPI applications on loans and cre-dit cards until July 31 and on mortgages until November 20 but is no longer receiving new applications.
A spokeswoman says: “This move reflects the uncertainty around the regulation of PPI sales and processes. The group bel-ieves further changes in regulation will make it uneconomic to continue to offer these products in their current form.”
The Competition Commission ruled in May that it would continue with its plans to ban point-of-sale PPI.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
