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Huge victory for consumers as Lloyds scraps PPI

Which? welcomes withdrawal of poor product

Lloyds TSB Branch

Which? welcomes the Lloyds Banking Group’s decision to scrap Payment Protection Insurance (PPI)

Which? today welcomed Lloyds Banking Group’s announcement that it is to stop selling Payment Protection Insurance (PPI).

Which? chief executive, Peter Vicary-Smith says: ‘The Lloyds Banking Group’s 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.’

PPI withdrawn across all five Lloyds brands

A spokesman for Lloyds said: ‘This move reflects the uncertainty around the regulation of PPI sales and processes. The group believes further changes in regulation will make it uneconomic to continue to offer these products in their current form.

‘Across all channels, on a phased basis from 23 July 2010, policies will no longer be sold to new customers alongside Lloyds TSB, Halifax, Bank of Scotland, Cheltenham & Gloucester and Black Horse personal loans, credit cards and mortgages. This decision will not affect customers with existing PPI policies.

‘The group will honour existing applications which are in progress until 31 July 2010 for personal loans and credit cards, and until 20 November 2010 for mortgages.’

Put in your PPI complaint if you’ve been missold

The welcome move by Lloyds Banking Group to withdraw its PPI products from sale shouldn’t stop you putting in a complaint if you think you’ve been mis-sold PPI in the past.

If you’ve bought PPI from Lloyds or any other provider, check our . If you believe you have been mis-sold, visit www.which.co.uk/ppiclaim to use our free online complaints tool.

And to find out why we think income protection is a better product for most consumers, read the Which? guide to PPI alternatives.

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