Lloyds payment protection deals end
The bailed-out Lloyds Banking Group, which is 41% owned by the public, has stopped selling payment protection insurance to new customers.
The company said it will instead provide a generic British Bankers' Association leaflet for anyone interested in the controversial insurance.
MoneySavingExpert.com, a consumer website, has long opposed many of the payment protection policies on the high street. Its founder Martin Lewis welcomed Lloyds' move.
"We're jumping for joy at this news and hope the other big banks follow suit. This insurance has been scandalously mis-sold for years, leaving many consumers in misery.
"People should go to competitive standalone insurers rather than banks, that's because they sell it at four or five times over the odds, often without checking suitability, meaning many have been duped into paying a hidden £1,000 extra on policies that are worthless for them."
The website provides a template letter for anyone who thinks they have been "duped". MoneySavingExpert said 900,000 copies have been downloaded.
Lloyds said existing payment protection policies will be unaffected, as will applications already in progress.
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