Lloyds pulls PPI sales

Lloyds Banking Group has ceased selling payment protection insurance (PPI) across all of its five channels.

The bank will no longer sell policies to new customers alongside Lloyds TSB, Halifax, Bank of Scotland, C&G and Black Horse personal loans, credit cards and mortgages.

"Lloyds Banking Group has withdrawn its PPI products across all brands and channels," the bank said.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."

It continued: “Across all channels, on a phased basis from July 23 2010, 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.

“The group will continue to offer a broad range of income protection, critical illness and life insurance to help meet customers’ protection needs.”