Watchdog: Lloyds in PPI information failure

LLOYDS BANKING Group has failed to give thousands of customers the correct information about their PPI following previous similar incidents, the competition watchdog has said.

The Competition and Markets Authority (CMA) has issued legal directions to Lloyds over “serious” breaches of the Payment Protection Insurance Market Investigation Order 2011.

It said Lloyds had failed to send annual PPI reviews and provided incorrect data to its customers. The CMA said that, following a series of breaches, it is now requiring legal assurances from Lloyds that it has measures in place to prevent similar breaches from happening again.

The watchdog said it is not the first time Lloyds has breached the PPI order, having reported six breaches in 2016 for failing to provide customers with correct data and annual reminders. The CMA acted against Lloyds after IT problems meant 14,000 customers did not receive a reminder between 2012 and 2018.

Lloyds also provided incorrect information on PPI premiums in annual reviews sent to 2,884 customers. Annual reviews remind customers they still have a policy as well as how much it is costing them each year and their right to cancel or switch. A Lloyds Banking Group spokesman 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.”