Lloyds Banking Group stops selling PPI

Lloyds Banking Group has stopped selling payment protection insurance (PPI) to customers who borrow money.

It is the first bank to respond in this way to long-running criticism of the policies and the way they have sometimes been mis-sold.

PPI is supposed to help people pay loans, mortgages or credit card bills if they fall ill or lose their jobs.

Its sale is now being restricted by the Financial Services Authority (FSA) and the Competition Commission.

Lloyds said it had stopped selling PPI polices last Friday, and the new policy would apply to customers of all its brands including the Halifax, Bank of Scotland and the Cheltenham & Gloucester.

“If people are interested in taking the insurance we will offer them a British Bankers’ Association (BBA) leaflet about the insurance,” a spokeswoman said.

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Posted by credit4everyone on Jul 30 2010 Filed under Our Guides. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry