MoneySavingExpert.com welcomes the news that Lloyds Bank Group (including Halifax) has stopped selling payment protection insurance on all its loans, credit cards and mortgages. Instead it will simply hand out a generic leaflet about PPI with such products.
Martin Lewis of MoneySavingExpert.com, comments, “ This is a quite astonishing move. This insurance, which has been scandalously mis-sold for years leaving many consumers in misery, is estimated to be worth up to five billion pounds a year for the industry. Frankly we are jumping for joy at this news, and hope the other big banks follow suit. The product itself is not bad, it can provide useful protection to people if they are sick or lose their jobs as it covers their repayments, but people should go to competitive standalone insurers rather than banks. That is because banks sell it at four or five times over the odds, often without checking suitability, meaning many have been duped into paying a hidden £1,000+ extra on policies that are worthless for them."
Income protection insurance: News update: 30 July 2010