Lloyds bank agrees to stop PPI sales
Lloyds bank has today agreed to withdraw PPI, payment protection insurance, from the list of services provided by the group. Earlier this year we saw the regulators suggesting that the way in which PPI is sold to the general public should change in the future. A cooling off period and a more detailed analysis of the total cost of PPI, together with discussions regarding the fact that many consumers may already be covered, were just two proposals put forward.
The announcement by Lloyds bank, which is likely to be copied by many other institutions in the UK, comes just 24 hours ahead of a Financial Ombudsman Service report. The report is expected to show that nearly 150 people a day have logged complaints about PPI in the three months to the end of June, up from 135 a day last year. A number of financial institutions have been accused of "mis-selling PPI contracts" although these claims have been refuted by the likes of Barclays bank and a number of UK institutions are taking action to prevent the withdrawal of PPI.
It will be interesting to see how the Financial Ombudsman Service report goes down in the city and indeed whether it does officially sound the death knell for PPI.
Cost-cutting skiers 'facing underinsurance risk'
Many skiers will put themselves at risk of being left out of pocket this winter - due to not having taken out travel insurance.According to new figures from esure, 18 per cent of Britons planning to hit the slopes this season are cutting costs by dropping the cover.Meanwhile, 65 per cent are considering cutting their trip short in order to save money - while 53 per cent could have their holiday in...Read More
UK government announces £20 billion loan insurance package
As we suggested yesterday, the UK government has today revealed plans for a £20 billion loan insurance package for small businesses. The move will see the government effectively guarantee loans to businesses, from the banks, which will take away the risk of default on the side of UK banks. However, interestingly the scheme has received mixed approval in the marketplace with many suggesting it is...Read More
BCC demands increase in VAT not national insurance
The British Chamber of Commerce (BCC) has today pleaded with the UK government to increase VAT to 18.5% instead of increasing the rate of national insurance contributions. Figures from the BCC suggest that the scrapping of next year's national insurance contribution increase would benefit businesses by £5.1 billion while an increase of just 1% in the rate of VAT would bring in around £4.5 billio...Read More
Insurance claims flood in
Up to 8,600 insurance claims are estimated to have flooded in from anxious policyholders following yesterday's wet weather.After torrential rain and flooding plagued a number of areas across the UK, Abbey Home Insurance warned that the damage wrought by the freak conditions had come as a "shock" to many people.The insurer estimates that some 3,200 claims for flood damage were made yesterday alone....Read More
UK parents warned on fronting car insurance for children
The Motor Insurers Bureau has issued a very strong warning to parents in the UK who are directly involved in the insurance of their children's cars by basically fronting an insurance policy by claiming to be the main driver. While for many people this can lead to significant savings for their children it is actually a form of car insurance fraud. Many people are totally unaware that the action...Read More