iNVEZZ.com, Tuesday, December 17: Lloyds Banking Group Plc (LON:LLOY), the UK’s biggest lender, will begin selling paid-for current accounts again, a year after it halted sales of the products due to concerns that they were being miss-sold.
The news comes just days after the bank was fined a record £28 million for “serious failings” in their control over sales incentive schemes (Lloyds share price: Bank fined £28 million for sales failings). However, according to financial website This is Money, the bank has made changes to the scheme.
In today’s London trading, Lloyds shares were down 0.4 percent to 76.30p at 8:02 UTC.
Lloyds said it will reintroduce a slimmed-down range of paid -for accounts in the New Year. The Guardian yesterday quoted a spokesman for the group who said that it wanted to move to a "single, consistent sales process, and align ourselves with the rest of the group and the industry".
Paid-for current accounts charge customers a monthly fee for additional services such as travel insurance. Lloyds had four paid-for current accounts, ranging from £9.95-a-month “Silver” accounts to “Premier” which cost £25 a month, before discontinuing them in December 2012. Lloyds and Bank of Scotland are planning to start selling the “Silver” and “Platinum” accounts, but not “Gold” and “Premier”.
But it appears that Lloyds may have taken steps to address this issue. According to an unnamed “Lloyds branch worker” cited by This is Money yesterday, paid-for accounts will have a significantly lower reward of 55 points attached to them when they return next year.
In a statement related to the fine imposed on the bank last week, the FCA’s director of enforcement and financial crime Tracey McDermott acknowledged that the bank has made “substantial changes, and the reviews of sales and the redress now being made should right many of these wrongs".
As of 9:11 UTC buy Lloyds shares at 76.50p
As of 9:11 UTC sell Lloyds shares at 76.46p
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.