Lloyds Banking Group (Lloyds) – known for Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows – has let the Competition and Markets Authority (CMA) down.
The major British banking group has been slapped with legal directions after it not only failed to send annual payment protection insurance (PPI) reviews to approximately 14,000 customers between 2012 and 2018 but also provided 2,884 clients with incorrect information on PPI premiums.
Without the power to hand down financial penalties for violations of the PPI market investigation order 2011, the CMA is requiring Lloyds to put effective systems and procedures in place to avoid similar breaches. A formal enforcement instrument, the issued directions can be used to ensure that a CMA-imposed Enterprise Act 2002 remedy such as the PPI order is complied with fully.
Not a first-time violator, Lloyds previously reported six breaches of the order in 2016.
“We are disappointed that Lloyds has again failed to provide these important reminders or provide accurate data to its customers,” commented CMA senior director of remedies, business and financial analysis Adam Land. “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.”
Meanwhile the regulator acknowledged the actions already taken by Lloyds, which notified the CMA of the breaches on June 28, as well as the banking group’s cooperation during the course of the investigation into the violations.
Lloyds has begun sending apology letters to affected customers and has provided not only a reminder of their right to cancel the PPI policy but also an offer to refund premiums.
