Today’s news that Lloyds won’t be selling payment protection insurance (PPI) anymore is a huge step forward in our campaign, but why ditch it now?
Which? and PPI go back a long way. We first raised issues with the market over 10 years ago. Since then we’ve campaigned for a number of years for adequate, appropriate and good value protection products that will benefit consumers.
So, of course we’re made-up about Lloyds’ announcement. We know from our own research that up to two million people may have been sold a PPI policy they will never be able to make a claim on. Plus, the Competition Commission revealed a few years ago that customers appear to be overcharged by over £1.4 billion a year.
PPI = poor value for money
These facts alone suggest PPI is a product that offers extremely poor value for consumers at a time when they are most feeling the pinch and need decent protection products. Banks ditching PPI means many people will be saved from being mis-sold a product they’ll never be able to make a claim on.
And yet, it’s hard not to wonder what Lloyds’ motives are when they’ve done a complete u-turn.
Last year, the Competition Commission decided to ban PPI from being sold at the same point as the credit product, such as a credit card or loan. Barclays appealed the decision and then Lloyds waded in to support them. Now, little more than a year later, they’re changing their minds. Why vociferously defend a product that you then proceed to stop selling the following year?
Whatever the motivation, we’re hoping this is a small victory that will become part of a much bigger movement towards the end of PPI and the introduction of better, value for money protection.
Have you been mis-sold PPI?
- Claiming back PPI is a quick and easy process, so there’s no need to go through a claims handler, who will charge for their service.
- If you want to claim back your PPI, use our PPI claim tool – a simple process to help you get your money back.
- If you don’t get the result you’re after, don’t accept a brush-off from your bank. Take your complaint to the Financial Ombudsman Service, which is free. Persistence pays off – almost 90% of complaints taken to the FOS are upheld in favour of the consumer.