Lloyds Banking Group (LBG) has withdrawn its Payment Protection Insurance (PPI) products across all brands and channels.
In a statement, the group said the decision reflected the uncertainty around the regulation of PPI sales and processes, and that 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 now, policies will no longer be sold to new customers alongside Lloyds TSB, Halifax, Bank of Scotland, C&G 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.
LBG continue to offer a broad range of income protection, critical illness and life insurance.
Which? chief executive, Peter Vicary-Smith, said: “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.