It’s important that all PPI providers take notice – we will continue to act if providers carry on breaking the rules. We welcome the fact that Lloyds’ has refunded – or committed to refund – customers £975,000 and we will monitor the bank closely to make sure those affected by the latest breaches receive the refunds to which they are entitled. These failures can mean people end up paying for insurance they no longer need. It’s a real concern that PPI providers are still breaking the rules by sending inaccurate PPI reminders despite a clear, well-established Order from the CMA. These breaches have also been logged on the CMA’s register of breaches, which records all breaches of market and merger remedies and is updated quarterly.Īdam Land, Senior Director of Remedies, Business and Financial Analysis at the CMA, said: The CMA will monitor Lloyds’ commitment to issue refunds and will consider formal enforcement action should Lloyds fail to take the appropriate action agreed with the CMA. The CMA has now written publicly to Lloyds to ensure that the bank will contact all customers with an open policy, who were affected by the most recent breach, and offer refunds to those eligible. This previous CMA action led to Lloyds self-reporting the new breaches on this occasion and taking steps to fix them. Lloyds has now refunded £957,000 for these breaches.Īs part of those Directions, the CMA also ordered Lloyds to notify it quickly of any similar breaches in the future. Since these Directions were issued, Lloyds has informed the CMA that it broke the Order 18 times over an 8-year period. In 2018, the CMA took formal enforcement action against Lloyds by issuing Directions. This is not the first time Lloyds has failed to comply with the Order. In the third breach, this figure in the annual reminders was incorrect. For 2 breaches, the monthly amount policyholders can claim on their insurance was displayed in the incorrect section. These affected 8,800 people who were sent incorrect information in annual reminders to mortgage PPI customers. The latest refunds, amounting to £17,000, come after Lloyds Banking Group (Lloyds) self-reported 3 breaches of the Order to the CMA. All PPI (Payment Protection Insurance) providers are subject to the Competition and Markets Authority’s (CMA) PPI Order, which requires them to send customers annual reminders that set out clearly the cost of their policy, the type of cover they have and reminds them of their right to cancel.
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