UK banks announce packaged account suspensions

20 December 2012

Two major British banks have decided to suspend sales of packaged accounts in-branch and over the phone next year.

Lloyds TSB and the Bank of Scotland will no longer permit consumers to sign up for these products as fears grow that the mis-selling of such accounts could become the next scandal to hit the banking industry after payment protection insurance, the Financial Times reports.

Earlier this week, the Financial Services Authority announced it has decided to tighten the rules surrounding packaged accounts in an attempt to make sure the products are not mis-sold on a large scale.

For instance, banks will have to send packaged account holders statements regarding their eligibility for insurance on an annual basis.

With this in mind, Lloyds and the Bank of Scotland have opted to make alterations to their policies immediately

“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," Lloyds told the news source.

By Gary Cooper

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