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8,800 Lloyds Customers Could Be Due Refunds Due To Wrong PPI Statements

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8,800 Lloyds Customers Could Be Due Refunds Due To Wrong PPI Statements

More than 8,000 customers of Lloyds Bank could be in line to receive compensation after an investigation revealed they'd been sent the wrong information.

The Competition and Markets Authority (CMA) has discovered that Lloyds broke the rules by sending out incorrect payment protection insurance (PPI) statements to 8,800 customers.

The current regulations state that PPI providers are legally required to send out statements each year that set out the total cost of the policy and the cover offered by the insurance, and clearly state the customers' right to cancel their policy.

However, these 8,800 people were sent incorrect information in their annual reminders about PPI on their mortgage policies.

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Credit: PA
Credit: PA

In some of those cases, the monthly amount that can be claimed on their insurance was shown in the wrong part of the statement, which could have confused customers.

In other instances, the amount in those annual reminders was wrong.

Lloyds has paid out £957,000 for breaches regarding PPI, having admitted to 18 breaches over a period of eight years.

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In 2018, the CMA took formal action against the bank for misinforming its PPI customers.

Now, they've agreed to contact all customers who have an open policy that were affected by the recent regulatory breach, and offer refunds to those who are eligible for them.

CMA spokesperson Adam Land told Mirror Online: "It's a real concern that PPI providers are still breaking the rules by sending inaccurate PPI reminders despite a clear, well-established Order from the CMA.

"These failures can mean people end up paying for insurance they no longer need.

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"We welcome the fact that Lloyds has refunded - or committed to refund - customers £975,000 and we will monitor the bank closely to make sure those affected by the latest breaches receive the refunds to which they are entitled.

"It's important that all PPI providers take notice - we will continue to act if providers carry on breaking the rules."

Credit: PA
Credit: PA

Payment protection insurance was sold with products that require a repayment over time such as loans, mortgages, and credit cards.

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It was designed to ensure that repayments could be made even if the customer was unable to do so. That meant that a redundancy, accident, or even death, would not result in further debt for the customer or their families.

However, the Financial Conduct Authority (FCA) discovered that PPI was frequently being mis-sold, and more than £33 billion has been paid back to those who complained about their PPI sale.

The FCA set a deadline of August 29 2019 for customers who wished to complain about their PPI. However, there are 'exceptional circumstances' that would allow some people to complain now that deadline has passed.

Featured Image Credit: PA

Topics: UK News, Business, Money, Finance

Tom Wood
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