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Lloyds halts packaged account sales

Lloyds halts packaged account sales

Category: Banking

Updated: 19/07/2017
First Published: 20/12/2012

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 It is now over 6 months old so the content may be out of date.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 Bank Group will suspend all branch and telephone sales of packaged current accounts with effect from 1 January 2013.

Packaged accounts, which require a monthly fee and offer a 'package' of benefits such as travel insurance and mobile phone cover, have come under fire from the Financial Services Authority (FSA) lately, amid fears that some customers were being miss-sold accounts by target-driven sales staff.

It is thought around one in three packaged account customers do not actually use any of the benefits offered, meaning many people are paying at least £15 a month just to hold a bank account.

Lloyds stated that the suspension of sales was due to system and staff training changes and that customers will still be able to apply for packaged accounts online.

A spokesperson for Lloyds Banking Group said: "We have made the decision to harmonise the way we sell packaged accounts across all brands within Lloyds Banking Group and align the sales process with that currently used within Halifax."

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