You are here: Home - Credit Cards & Loans - News -

Lloyds rapped by regulator over serious PPI breaches

0
Written by: Paloma Kubiak
04/10/2018
The competition regulator has taken action against Lloyds for failing to send obligatory annual reminders to thousands of Payment Protection Insurance (PPI) customers.

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.

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.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

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

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
Council tax and energy bill hikes fuel problem debt

Nearly a third of people struggling with debt said they’re behind on council tax payments while a charity is also...

Close