Halifax CEO Andy Hornby may end up with £2m worth of shares in the new business, but for thousands of employees they will be left without a job. Unfortunately it is too late to take out protection insurance once something happens and people need to have cover in place to make sure they can ride out any sudden and unexpected changes to their personal circumstances.
Braintree, Essex (PRWEB) September 23, 2008
Thousands of innocent staff will be made redundant if and when the Lloyds TSB and HBOS merger goes through.
With 140,000 employees between them, some commentators have suggested as many as 40,000 people may lose their job. This will create financial hardship for many of those being shown the door, while finding new employment is going to prove difficult in a stuttering economy.
British Insurance, the payment protection insurance specialist, is offering a free protection policy to marketing figurehead Howard at the Halifax to help protect him against any possible change to his employment status.
Simon Burgess, managing director at British Insurance, commented: "Halifax has made a virtue of always offering its customers extra. Now it has run aground, what will it offer staff? By offering a policy to Howard we want to give him some valuable protection and show others that PPI insurance is affordable, despite the exorbitant rates charged by HBOS and Lloyds TSB."
If anything, the events of the last few weeks have shown how quickly major organisations can be brought to their knees, said Burgess.
"Halifax CEO Andy Hornby may end up with £2m worth of shares in the new business, but for thousands of employees they will be left without a job. Unfortunately it is too late to take out protection insurance once something happens and people need to have cover in place to make sure they can ride out any sudden and unexpected changes to their personal circumstances."
The irony is that Lloyds TSB and HBOS are among some of the worst offenders when it comes to overcharging customers for PPI. Having spent years profiting from these over priced policies, they are now going to make tens of thousands of staff redundant to boost the profitability of the new organisation.
Burgess commented: "As ever, it's the average employee who will suffer. In the past many people have been put off PPI because of the high premiums charged. However it is so important people realise that they can protect themselves at affordable rates so they can create a financial safety net for themselves and their families."
Cheltenham and Gloucester, the mortgage lender owned by Lloyds TSB, offers MPPI at a rate of £7.70 per £100 of cover, while Halifax charges £5.94. When British Insurance can offer the insurance for £2.40 per £100, Burgess said this clearly showed how badly they were overcharging.
"We need to show consumers that the only people always getting a little bit extra are the high street banks that over charge for their policies," said Burgess.
"PPI needs to be affordable for the average man in the street if it is to offer enough people a viable way of protecting themselves. The best policies are affordable and we need to help people find them."