A BANK and a finance company have paid out compensation to a Huddersfield pensioner.

Lloyds TSB and CPP had been accused of overcharging for unnecessary insurance policies for Mrs Phyllis Whiteley.

And they were accused of “greed” and of preying on the elderly by Mrs Whiteley’s relatives, Anthony and Sandra Peel.

The Mirfield couple had power of attorney over Mrs Whiteley’s affairs after she moved into a care home and were astonished to find she was paying out large sums for duplicate policies.

After breaking a hip, the 90-year-old widow moved from her Dalton house into Hopton Care Cottages, Mirfield, in July.

Mr and Mrs Peel, who have lasting Power of Attorney, decided it would be sensible to take charge of her financial affairs.

They were shocked to discover that Phyllis had been spending hundreds of pounds a year for several years on duplicate or unnecessary insurance policies.

Her bank, Lloyds TSB in Huddersfield, had charged Phyllis £350 for a household insurance policy which was available on their website for a fraction of the price.

Mr Peel, who is president-elect of Huddersfield Pennine Rotary Club, has now cancelled it and taken out a much cheaper policy offering the same level of cover.

For the last two years, Lloyds TSB had also sold Phyllis a home emergency policy at around £70 a year, despite her statements clearly recording that she was already paying direct debits to Yorkshire Water for FOUR emergency policies.

Following an official complaint, the branch has refunded the £140.

He also discovered that Phyllis has paid an annual fee since 2005 for “identity protection” to CPP whose number was given on the back of a Barclaycard.

Following another official complaint by Mr Peel, CPP has paid back £419.63 – all the money Phyllis paid over the last seven years, plus 8% interest.

Barclays has since terminated the arrangement with CPP, which is currently under investigation by the Financial Services Authority (FSA).

Also being investigated by the FSA for misselling is Home Serve, the company which sold Phyllis the four emergency policies on behalf of Yorkshire Water.

Mr Peel is concerned that other elderly people may be in the same position as his mother-in-law.

He said: “I have been absolutely disgusted with the way banks and other institutions have been treating my mother-in-law.

“She has been subjected to predatory sales tactics; it is the old story of people who are vulnerable being targeted.

“My mother-in-law trusted the banks and unfortunately she has been overcharged. They have let her down badly. I’m sure that there will be lots of elderly people in a similar situation who are very susceptible to high pressure sales techniques”.

A spokesman for Yorkshire Water said: “We are taking this very seriously. An investigation is ongoing and we continue to liaise very closely with Mr and Mrs Peel.”