Lloyds slammed for ‘serious’ PPI breaches
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.”