You are here: Home - Insurance - News -

Lloyds slammed for ‘serious’ PPI breaches

Written by: Hannah Uttley
Lloyds Banking Group has come under fire from the competition watchdog for a number of “serious” breaches in its annual reviews issued to customers who had taken out payment protection insurance.

In a letter sent to Lloyds, the Competition and Markets Authority (CMA) said a number of substantive breaches had been identified in the bank’s 2016 compliance report submitted to the watchdog, in addition to further issues seen in advance of Lloyds’ 2017 report which is due in April.

Breaches identified in the reports included the bank’s failure to issue annual reviews to some PPI customers and some annual reviews containing incorrect data. Further breaches also involved LBG’s third party data supplier, Aviva.

Annual reviews are sent to customers of Lloyds as reminders that they continue to pay PPI which they are entitled to cancel, raise consumer awareness of their ability to switch PPI provider and to help compare the premium with policies offered by other providers.

Following an audit in June last year, Aviva discovered that 53 historic Cheltenham & Gloucester customers had not received an annual review, caused by a coding error when sending data to Lloyds. A further five C&G customers were also affected last year when incorrect data was submitted relating to the amount shown for mid-term adjustments.

The other breaches identified included incorrect supplementary mortgage figures sent to around 4,700 customers for the fields ‘Estimated total remaining charge for loan’ and ‘The total remaining amount you must pay back’, also due to a coding error.

Lloyds has been required to confirm to the watchdog that it has sent letters of apology to customers regarding incorrect mortgage details by 27 January.

A spokesperson for Lloyds Banking Group, said: “We have informed the CMA of issues regarding compliance of the PPI Order during the period from 2012 to 2016. These issues have since been resolved. Nonetheless, we apologise for any inconvenience caused.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Hargreaves lansdown
Why consider investment trusts for income 

In a world of low interest rates and low bond yields investors hunting for income have had to widen their...