Lloyds ends sale of PPI
Lloyds Banking Group has stopped selling
payment protection insurance (PPI) products across all its brands
and channels, months after a provisional ban by the Competition
Commission.
The UK’s largest retail bank said policies
will no longer be available to new customers alongside Lloyds TSB,
Halifax, Bank of Scotland, Cheltenham & Gloucester and Black
Horse personal loans, credit cards and mortgages.
The withdrawal of PPI, which PPI covers
repayments on credit products if the borrower is unable to make
repayments due to accident, sickness, unemployment or death, has
already started on a phased basis.
But the bank said that the decision will not
affect customers with existing PPI policies, with applications for
personal loans and credit cards planned to remain in progress until
the end of July, and until 20 November for mortgages.
The move, part of a long-running battle to ban
PPI alongside personal finance products, comes a few months after
the
UK’s Competition Commission provisionally banned the sale of
PPI after finding that banks and building societies were making
larger than expected profits and offering little choice to
consumers.