Lloyds and Halifax PPI customers could be due refunds after banks failed to send letters
Lloyds, Halifax and Bank of Scotland have been rapped by the competition watchdog for failing to send out the correct information to thousands of customers who had PPI policies.
Lloyds Banking Group, which owns the three banks, has been issued with legal directions by the Competition and Markets Authority (CMA) over its failure to send out an annual PPI review to 14,000 customers between 2012 and 2018. It also sent out incorrect information to 2,884 customers.
The CMA says the legal directions require the three banks to put effective systems and procedures in place to prevent similar incidents from happening in the future.
The banks are now sending apology letters to affected customers, which will also provide a reminder of their right to cancel the policy and offer to refund premiums.
This is not the first time Lloyds has breached the CMA's PPI rules, having been reported for failing to provide customers with correct data and annual reminders back in 2016.
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What is an annual review?
The annual PPI review is a letter sent to customers to remind them they still have a policy, say how much it is costing each year, and say they have a right to cancel or switch.
It was introduced following an investigation into PPI by the competition watchdog back in 2011.
What does the CMA say?
The CMA's senior director of remedies, business and financial analysis Adam Land 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 they comply.
"Following a series of breaches, we're now requiring legal assurances from Lloyds that they have measures in place to prevent similar breaches from ever happening again."
What does Lloyds Banking Group say?
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.
"Whilst we have resolved the cause of the issue, we are extremely sorry for any inconvenience caused. We will be contacting all affected customers."