Lloyds Banking Group has committed a number of “serious” breaches of the rules around payment protection insurance, according to the UK Competition & Markets Authority.
On Wednesday the CMA published a letter noting Lloyds has been found in breach of a number of rules of the Payment Protection Insurance Market Investigation Order 2011.
“We consider that the breaches listed below constitute serious breaches… which could potentially harm customers’ interests. Lloyds Banking Group has agreed to take the necessary action to ensure that in future it complies fully with the order,” said the CMA.
Breaches included increasing PPI premiums despite customers opting out, due to a faulty computer system. Lloyds also failed to issue several customers an annual review of their PPI policies, and provided incorrect mortgage figures.
Lloyds has refunded customers who were overcharged premium amounts and sent corrected records and apology letters to those sent no, or mistaken, information.
The issues were flagged up by Lloyds in its 2016 compliance report to the CMA, with some breaches also reported ahead of the 2017 compliance report.
Full Content: London South East
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