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Bank makes changes to PPI policy

Bank makes changes to PPI policy

Category: Loans

Updated: 16/12/2008
First Published: 15/12/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Lloyds TSB has announced changes to the payment protection insurance (PPI) it offers to customers with unsecured loans.

PPI is taken to insure against the possibility of a borrower becoming unable to meet repayments and the lender has noted an increase in claims.

According to Lloyds TSB, unemployment claims have risen by 100 per cent since January.

It is now replacing its single premium PPI policy - which saw the cover added on to the price of the loan - with a regular monthly premium, meaning customers no longer pay interest of the amount owed.

Commenting on the move, manager director of Lloyds TSB customer banking Ian Larkin remarked: "We want to continue to do as much as we can to support our customers in this difficult climate ... Spreading the cost of PPI makes it accessible and affordable for more customers."

The Competition Commission recently proposed a ban on single premium policies.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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