Barclays has offered 10,000 of its PPI customers the opportunity to cancel their policies and receive refunds on payments plus interest, after it breached an order by the Competition and Markets Authority (CMA).

The bank wrote to affected customers in early February to apologise for its error in not sending out annual statements outlining the cost of PPI and including a reminder of the customer's right to cancel their policy.

The CMA has sent a letter to the bank today asking for better communication in future, to ensure its customers receive their statements correctly.

The annual statement was one measure introduced in the 2011 order that followed the Competition Commission's (CC's) investigation into the mis-selling of PPI. The idea of the statement was so that customers would know they have PPI, know how much they're spending on it, and know that they have the right to cancel it. Check out our guide on How To Reclaim PPI For Free.

Payment protection insurance (PPI) is an insurance product that allows people to insure repayment of credit if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to pay off the debt.

Martin Lewis
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Who's impacted by this?

In April 2015, a Barclays compliance report revealed that 52 PPI credit card customers had not received their annual statements.

Further investigation showed that, over the previous three annual statement periods, 9,404 credit card PPI customers had not received their statements.

Additionally, 740 customers on a specific mortgage PPI scheme had not received their annual statements since the CC's order came into force in 2012.

What will I get back from Barclays if I decide to cancel my PPI contract?

If you're an affected customer you should have an apology letter in which the error is explained and – if you wish to cancel your policy – you'll be offered a refund on PPI premiums paid out since the date of your first missing statement, plus 8% interest.

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