PPI axe could lead to debt advice

More customers may be driven to look for debt advice after Lloyds Bank decided to stop selling the controversial Payment Protection Insurance (PPI) across all its brands.

This means that all Lloyds TSB, Halifax and Bank of Scotland customers will no longer be offered the payment solution, according to MoneySavingExpert.com.

The site's founder, Martin Lewis, remarks that "this insurance has been scandalously mis-sold for years, leaving many consumers in misery," due to its high rates.

However, now there is less chance to buy PPI, consumers could end up needing debt management if they lose their jobs and can't afford repayments on items that insurance otherwise would have covered.

Kevin Still, director of Atlantic Financial Management, says: "The potential need for income protection in a recession should be very high, but UK consumers need confidence that it is being appropriately sold and takes account of the client's circumstances and eligibility.

"Loss of income remains the number one reason for people starting a Debt Management Plan (DMP) with Atlantic Financial Management. Serious debt problems could have been averted in some instances if people had adequate protection cover in place, particularly to cover essential household costs like your mortgage."

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