Lloyds rapped by regulator over serious PPI breaches
PPI providers are required to send annual reminders to customers setting out how much they’ve paid and their right to cancel a policy.
But after suffering IT problems, around 14,000 Lloyds customers didn’t receive the annual statement between 2012 and 2018.
Further, the Competition and Markets Authority (CMA) found that Lloyds also provided incorrect information on PPI premiums in annual reviews sent to nearly 3,000 customers.
This isn’t the first time Lloyds has breached PPI orders, as the CMA said six breaches were reported in 2016 for failing to provide customers with correct data and annual reviews.
As such, the lender has been issued with ‘legal directions’, requiring it to put procedures in place to prevent similar incidents happening again in the future. These include notifying the CMA of any breaches within 14 days, carrying out monthly monitoring checks and submitting an annual compliance statement.
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 it complies.
“Following a series of breaches, we’re now requiring legal assurances from Lloyds that it has measures in place to prevent similar breaches from ever happening again.”
A Lloyds Banking Group spokesperson, said: “We are writing to a small number of credit card customers whom we identified as having not received their annual PPI statements. While we have resolved the cause of the issue, we are extremely sorry for any inconvenience caused. We will be contacting all affected customers.”
Related: See The YourMoney guide to claiming PPI for more information.