Sunny

Sunny

max temp: 13°C

min temp: 9°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

UK: Lloyd TSB’s halts push on account ‘packages’

17:06 31 December 2012

A Lloyds TSB branch in Leeds

A Lloyds TSB branch in Leeds

LLOYDS TSB is temporarily pulling the plug on sales of its paid-for current accounts today amid a clampdown on the industry by the City regulator.

shares

The banking giant charges up to £300 a year for the accounts, which include add-ons such as travel and mobile phone insurance and car breakdown cover.

Lloyds will temporarily stop offering its “packaged” accounts in branches and over the phone, although customers can still sign up for them on the bank’s website.

The bank has previously explained that it wants to put system changes in place and bring the way it sells such accounts into line with its sister bank, Halifax.

It has rebutted suggestions that the move follows concerns that some accounts may possibly have been mis-sold, and said it was also unrelated to a crackdown on sales of packaged accounts by the Financial Services Authority (FSA).

From March 31, banks will be forced to provide packaged account customers with annual statements to make it easier to check that products are suitable.

The FSA’s new rules will also mean providers have to check whether customers are eligible to claim on insurance cover before selling them a packaged account.

This follows concerns that people are being sold perks that they will never be able to claim on, such as travel insurance being sold to people who are too old to fit the criteria.

A Lloyds spokesman previously said: “It is not about the FSA or mis-selling, it is about moving to a unified process within the group.”

Lloyds and Halifax have had two different sales processes and Lloyds is moving to the way that Halifax makes its sales.

Halifax sales staff offer their customers a list of accounts and let them make their own selection, which is a process known as “informed choice”, while Lloyds staff have been recommending different accounts to customers. Lloyds plans to re-enter the market at some point next year, although it has not confirmed exactly when this will be.

An estimated three million customers pay for one of four different packaged accounts offered by Lloyds, ranging from its Silver account, which charges £9.95 a month, to its Premier deal, which carries a £25 monthly fee. The bank has said that existing customers will be unaffected and can continue to use their accounts and their benefits as normal.

Packaged accounts are held by a fifth of adults in the UK and the ombudsman receives around 30 complaints a week about packaged accounts.

shares

0 comments

Andrew Wheeler of Brewin Dolphin.

Andrew Wheeler, head of the Ipswich office of investment manager Brewin Dolphin, has hailed the firm’s “good progress”.

Thomson Airways' new Boeing 787 Dreamliner touching down at Stansted.

Stansted Airport today marked the arrival of the latest in airline technology with the launch of a new long-haul service from the Essex terminal.

'Love every drop' branding on an Anglian Water van.

Regional water and sewerage services group Anglian Water has announced an increase in underlying annual profits, following a year which marked the end of a five-year settlement with regulator Ofwat.

An LA Fitness gym.

Low-cost gym operator Pure Gym is to acquire mid-market rival LA Fitness, picking up 43 clubs for an undisclosed sum thought to be in the range of £60million to £80m.

Frank Brumby, eastern region chairman of R3.

East of England business victims of late payment saw more than one in six (16%) of their invoices paid late in the last six months, according to research by insolvency trade body R3.

B&Q parent Kingfisher said it was ploughing on with a shake-up plan

B&Q parent Kingfisher said today it was ploughing on with a shake-up plan “at pace” as it reported a first quarter slide in sales at the DIY chain.

Sarah Howard, president of Suffolk Chamber of Commerce, and Mark Pendlington, chairman of New Anglia Local Enterprise Partnership, at the celebration marking the first year of work by the New Anglia Growth Hub.

Supporters and staff from the New Anglia Growth Hub today celebrated its first year of work.

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Angus Berry, energy manager at Thames Water, and Richard Robey, sales and marketing director at Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Most read

Most commented

Topic pages