Partly Cloudy

Partly Cloudy

max temp: 18°C

min temp: 15°C

ESTD 1874 Search

The pigs have arrived. See the latest

Pigs Gone Wild

news here.

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.

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.

0 comments

Metin Ozer, from Mr Chippys Fish and Seafood Restaurant, Simone McLean, from S&S Caribbean Cafe, Sharalyne Monk, from Zebra News, Jessica Schomberg, from Jes, Izabela Serwin, from Cardamon Cafe, and April Moodie, from Music Warehouse, are angry how a trade is being affected due to a portion of St John's Street in Colchester is blocked due to sewer repairs.

Businesses say they have been left counting the cost and struggling for survival after a collapsed sewer has closed a Colchester town centre road for six weeks.

Bernard Matthews is up for sale. Image: Bernard Matthews

The owners of one of Europe’s biggest turkey producers is exploring options to sell.

Jenny Hill, systerms and administration manager at TA Hotel Collection, receives her Managing Director's Award from Grahame Tinnion, right, manager director of TA Hotel Collection, and Simon turner of award spnsor Sumaridge Estate Wines.

Suffolk-based hotels group TA Hotel Collection has announced the winners of its 2016 team awards during a celebratory evening held at its Thorpeness Country Club venue near Aldeburgh.

Stock image. Despite road signs saying the road is shut, businesses along the B1113 are open for business. The road closure is not in affect for more than seven miles from the point of closure at the roundabout for the Old Neton Road between Stowupland and Stowmarket.

Business owners in mid Suffolk have claimed road works scheduled to run until September will affect trade numbers over the summer months.

Rooney Anand, chief executive of Greene King

Pubs and brewing group Greene King today reported a 60% increase in annual pre-tax profits after a “transformational” year which saw it become the UK’s largest operator of directly managed pubs.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

Great British Life

Great British Life
MyDate24 MyPhotos24