Lloyds TSB has revealed that it is to impose an annual fee of GBP35 for credit card customers who do not use their card much, while, in other news, the UK banking group is reportedly putting its life insurance subsidiary Abbey Life up for sale.

Lloyds TSB will be the first of the big high street banks to implement an annual fee on its credit card, which will affect approximately 50,000 of its account holders, but This Is Money reports that the finance industry believes others will follow suit.

The decision to impose a charge was due to the lack of business being generated from customers who had a credit card but did not use it much, as these customers still receive statements and other materials.

In other Lloyds TSB news, the bank is reportedly set to sell its life insurance business Abbey Life and has instructed bankers to draw up a sales prospectus for potential buyers.

Possible buyers are expected to make first round bids within the next few weeks, The Scotsman has reported.