Yahoo Finance Barclays criticised by competition watchdog for failing again to tell customers about PPI costs
Barclays has been criticised by the competition watchdog for failing to notify thousands of customers about their right to cancel their payment protection insurance (PPI).
The high street bank has been rapped by the Competition and Markets Authority (CMA) before for breaches of a 2011 order requiring lenders to notify customers of how much they’re paying for PPI.
The latest breach relates to Barclays failing to provide a reminder to 2,265 Littlewoods credit card customers with PPI between October 2016 and October 2017.
The CMA issued Barclays with legal directions requiring it to put in place better systems and procedures to ensure it doesn’t happen again.
Barclays was last criticised by the CMA in 2016, after failing to send apology letters and annual statements to about 10,000 PPI customers.
The bank informed the CMA of its latest breach in March this year and has since written to all affected customers letting them know they can cancel the policy and offering a refund.
Barclays has paid almost £336,000 in refunds to affected customers since then.
The CMA does not have the power to fine lenders for breaching its 2011 order, but has called to be given this in order to put further pressure on businesses to comply.
Adam Land of the CMA said: “The annual reminder is an important measure so customers know they still have a PPI policy and how much it is costing them each year, as well as their right to cancel or switch.
“This is Barclays’ second breach of the PPI order. As a result, we are issuing legal directions which can be enforced by a Court, to ensure they comply with the order.
“We now require assurances from Barclays they have now put adequate systems in place to prevent a similar breach from occurring again.”
Repaying customers for PPI is the most costly scandal to hit the banking industry since the financial crisis and is expected to cost them more than £40bn.
