The paper’s personal finance editor said that the bank was right not to join the BBA judicial review of the point-of-sale PPI ban with unsecured personal loans.

A report from the Financial Ombudsman shows that Lloyds is responsible for the most complaints about personal loans and other practices.

Unsecured personal loans and credit cards will be the core products available at the company.

The watchdog wants lenders to improve the way they handle the insurance for credit cards and personal loans.

Consumer organisation Which? has said that many companies seem unfazed by the looming ban on point-of-sale PPI.

A new report says that secured loans can place a customer’s property at risk and are usually best avoided in favour of unsecured loans.

Anyone who thinks they were mis-sold PPI on their personal loans, credit cards or mortgages has more time to refer it to the Financial Ombudsman.

One analyst has said that the proposed action by the industry watchdog could stop borrowers having any form of insurance at all.

The financial watchdog revealed a 46 per cent increase in overall complaints regarding personal loans, mortgages and credit cards.

A provisional decision by the Competition Commission means that lenders will not be able to offer payment protection insurance at point-of-sale.