- FS industry agrees new code supporting victims of financial abuse
- The World Alliance of International Financial Centres launches
- Banks and law firms commit to new working practices for better mental health
- The FCA consults on its approach ahead of the UK’s exit from the EU
- Regulators must work together to avoid breakdown in cross-border financial services, says UK Finance
- Voice ID launches to customers of Lloyds, Halifax and Bank of Scotland
- Date of Bank of England stress testing results announced expired
- NAB choses Brilliance Financial Technology to transform pricing processes expired
- Target Group strengthens its Client Services team with double hire expired
- Over half of the UK’s workforce wants more help from employers with financial planning expired
- Fintech finance firm Duologi aims for ambitious growth expired
- JP Morgan mandatory coding training sets it apart from crowd, says Infosys expired
9th October 2018
CMA issues Lloyds with legal directions for PPI breaches
The Competition and Markets Authority (CMA) has issued Lloyds with legal directions after it failed to send annual payment protection insurance (PPI) reviews and provided incorrect PPI data to its customers. It is now requiring Lloyds to put effective systems and procedures in place to prevent similar incidents from happening in the future.
This is not the first time Lloyds has breached the CMA’s PPI order, having reported six breaches in 2016 for failing to provide customers with correct data and annual reminders.
The CMA’s action comes after an investigation into PPI by the Competition Commission, concluding in 2011. One of the measures introduced was for customers to receive an annual review once a year from their provider, setting out clearly how much they had paid in and their right to cancel the policy.
The CMA decided to act against Lloyds after IT problems meant approximately 14,000 of its customers did not receive this reminder between 2012 and 2018. Lloyds also provided incorrect information on PPI premiums in annual reviews it sent to 2,884 customers.
Adam Land, the CMA’s Senior Director of Remedies, Business and Financial Analysis, said: “We are disappointed that Lloyds has again failed to provide these important reminders or provide accurate data to its customers.
“These are serious breaches and, as we did with Barclays in August, we are issuing Lloyds with legal directions, which can be enforced by a Court to ensure they comply. Following a series of breaches, we’re now requiring legal assurances from Lloyds that they have measures in place to prevent similar breaches from ever happening again.”
The annual PPI review is an important measure so customers know they still have a policy and how much it is costing them each year, as well as their right to cancel or switch. Lloyds has started sending its apology letters to affected customers and has provided a reminder of their right to cancel the policy and an offer to refund premiums.