Yahoo Finance Lloyds in 'serious' breach of PPI rules (again), says competition watchdog
Lloyds Banking Group has been ordered to tighten its procedures by the competition watchdog after it failed to tell thousands of customers about their right to cancel their payment protection insurance.
The Competition and Markets Authority said it is taking action against the bank for "serious breaches" after it failed to remind 14,000 customers between 2012 and 2018 that they still have a policy and can cancel. It also sent incorrect information to 2,884 others.
The watchdog said this is not the first time Lloyds has broken the rules, which have been in place since 2011, as the bank reported six breaches two years ago.
"We are disappointed that Lloyds has again failed to provide these important reminders or provide accurate data to its customers," said CMA director Adam Land.
The watchdog said that "given the continued failure" of Lloyds to comply it will now issue the bank with legal directions to make sure it follows certain measures.
These include carrying out monthly checks to ensure the reviews are going out, appointing an independent body to assess its systems and reporting further breaches to the watchdog within two weeks.
A spokesman for the bank, which has paid over £18bn in compensation claims over mis-sold PPI, said it was writing to all affected customers to apologise.
"Whilst we have resolved the cause of the issue, we are extremely sorry for any inconvenience caused," she said.
The move comes months after Barclays was rapped by the CMA for failing to provide a reminder to 2,265 Littlewoods credit card customers with PPI between October 2016 and October 2017.
