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Lloyds and Bank of Scotland suspend packaged account sales

Lloyds TSB and Bank of Scotland have suspended telephone and branch sales of packaged bank accounts from next year, according to the Financial Times.

 
Lloyds and Bank of Scotland suspend packaged account sales

Lloyds TSB and Bank of Scotland have suspended telephone and branch sales of packaged bank accounts from next year, according to the Financial Times.

The banks’ move comes after the Financial Services Authority strengthened its rules on the accounts, requiring banks to write to customers explaining their eligibility for insurance sold as part of the accounts.

Fears have been raised that packed accounts could spark the next mis-selling scandal, with customers paying for services they are unable to receive.

Lloyds Banking Group told the FT the move was not motivated by mis-selling fears but the need to harmonise sales across its different brands.

‘Embedding this change properly across our business will require us to update our systems, and amend the sales process and training we provide to colleagues,’ it said. ‘We are committed to offering packaged accounts as we believe they offer real value to our customers, which is why we expect to fully re-enter the market later in 2013.’

7 comments so far. Why not have your say?

Michael Stevens

Dec 20, 2012 at 16:23

I have a package account with Lloyds.

It is very good, as I had to make a Trevel claim.

The company paid out with no problems.

Thank you Lloyds Bank

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Carefull watcher

Dec 20, 2012 at 17:40

All very well Michael Stevens, but how much did the insurance cost you? Have you paid less than you would have done if you had bought stand-alone travel insurance? And have you used any of the other 'benefits' included, and paid for, in the package?

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george megarry

Dec 20, 2012 at 19:03

well they paid me,im haappy

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george megarry

Dec 20, 2012 at 19:03

well they paid me,im haappy

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Rose G

Dec 21, 2012 at 11:45

I have a packaged account with Lloyds and believe it to be good value; my annual roadside assistance with AA previously was approximately £179, set to increase annually even if I had not used their service. This is included in my package. I also have travel insurance, which I have not claimed against,

There should not be a blanket ban on this product, customers should be able to make their own minds up and make the calculations before deciding to sign up for it.

Every individual has different set of circumstances, and services should be tailored to suit them, not one size to fit all!

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Hilary hames

Dec 21, 2012 at 17:06

my husband and Ihave joint acc with Halifax similar to what other banks offer

£10 a month (really £15 because we would otherwise get £5 from the bank each month) and we get travel insurance for 2 plus AA for 2..the worldwide insurance is marvellous because we are over 65 where it starts to get expensive to insure. This lasts till we are 70

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richard hickman

Dec 23, 2012 at 08:54

If you don't think the account is worth it without the packaged products that you don't use, then move the account. I don't throw away my TV because I can't get the Dave channel!

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