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Competition watchdog slams Lloyds after PPI errors

The CMA said Lloyds had failed to send annual reviews detailing how much customers need to pay and their right to cancel the policy to some 14,000 eligible customers
Competition watchdog slams Lloyds after PPI errors
LLoyds has already paid out over £18bn in compensation over mis-sold PPI

Lloyds Banking Group PLC (LON:LLOY) has been ordered to improve its procedures around payment protection insurance (PPI) by the UK’s Competition and Markets Authority (CMA), which accused the bank of breaching its current arrangements.

The competition and consumer watchdog on Thursday said Lloyds had failed to send annual reviews detailing how much customers need to pay and their right to cancel the policy, which have been required by the regulator since 2011, to some 14,000 eligible customers. The CMA also said that some of the reviews sent by the bank were incorrect.

READ: Lloyds to be hit worst by ‘intense mortgage competition’, says Goldman as it moves RBS up to ‘buy’

"We are disappointed that Lloyds has again failed to provide these important reminders or provide accurate data to its customers," Adam Land, the CMA's senior director of remedies, business and financial analysis said in a statement, adding that these were “serious breaches."

The bank, which has already paid out over £18bn in compensation over mis-sold PPI, said it was writing to affected customers.

Under new CMA rules, Lloyds must provide more detailed information on its compliance with the CMA's order, report any failures or breaches within two weeks and appoint an independent body to review its compliance systems each year.

It will also have to strengthen its monitoring and take steps to ensure its systems remain robust during migrations.

Shares in Lloyds were 0.8% up at 58.87p in mid-afternoon trade.

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