{"id":96262,"date":"2018-10-04T09:12:56","date_gmt":"2018-10-04T09:12:56","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=8344cb0904915c191be1fddc021d501e"},"modified":"2018-10-04T09:12:56","modified_gmt":"2018-10-04T09:12:56","slug":"press-release-lloyds-issued-with-legal-directions-for-ppi-breaches","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=96262","title":{"rendered":"Press release: Lloyds issued with legal directions for PPI breaches"},"content":{"rendered":"
\n

The Competition and Markets Authority (CMA<\/abbr>) has issued Lloyds with legal directions<\/a> after it failed to send annual payment protection insurance (PPI<\/abbr>) reviews and provided incorrect PPI<\/abbr> data to its customers. It is now requiring Lloyds to put effective systems and procedures in place to prevent similar incidents from happening in the future.<\/p>\n

This is not the first time Lloyds has breached the CMA<\/abbr>\u2019s PPI<\/abbr> order, having reported 6 breaches in 2016<\/a> for failing to provide customers with correct data and annual reminders.<\/p>\n

The CMA<\/abbr>\u2019s action comes after an investigation into PPI<\/abbr> by the Competition Commission, concluding in 2011. One of the measures introduced was for customers to receive an annual review once a year from their provider, setting out clearly how much they had paid in and their right to cancel the policy.<\/p>\n

The CMA<\/abbr> decided to act against Lloyds after IT problems meant approximately 14,000 of its customers did not receive this reminder between 2012 and 2018. Lloyds also provided incorrect information on PPI<\/abbr> premiums in annual reviews it sent to 2,884 customers.<\/p>\n

Adam Land, the CMA<\/abbr>\u2019s Senior Director of Remedies, Business and Financial Analysis, said:<\/p>\n

\n

We are disappointed that Lloyds has again failed to provide these important reminders or provide accurate data to its customers.<\/p>\n

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.<\/p>\n

Following a series of breaches, we\u2019re now requiring legal assurances from Lloyds that they have measures in place to prevent similar breaches from ever happening again.<\/p>\n<\/blockquote>\n

The annual PPI<\/abbr> review is an important measure so customers know they still have a policy and how much it is costing them each year, as well as their right to cancel or switch.<\/p>\n

Lloyds has started sending its apology letters to affected customers and has provided a reminder of their right to cancel the policy and an offer to refund premiums.<\/p>\n

Notes to editors<\/h3>\n
    \n
  1. \n

    The CMA<\/abbr> is the UK\u2019s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA<\/abbr> updates, follow us on Twitter<\/a>, Facebook<\/a> and LinkedIn<\/a>.<\/p>\n<\/li>\n

  2. \n

    Lloyds Banking Group is in breach of the Payment Protection Insurance Market Investigation Order 2011<\/a> (the PPI<\/abbr> Order). One of the requirements of the order is that all PPI<\/abbr> customers would receive an annual review from their provider setting out information including how much they had paid into their policy.<\/p>\n<\/li>\n

  3. \n

    Directions are a formal enforcement instrument, which can be used to ensure that an Enterprise Act 2002 remedy imposed by the CMA<\/abbr>, in this case the PPI<\/abbr> Order, is complied with fully.<\/p>\n<\/li>\n

  4. \n

    On 28 June 2018, Lloyds notified the CMA<\/abbr> of the breaches. The CMA<\/abbr> acknowledges the co-operation it has received from Lloyds during the course of the investigation into these breaches and the actions already taken by Lloyds.<\/p>\n<\/li>\n

  5. \n

    The CMA<\/abbr> does not currently have the power to impose financial penalties for breaches of this kind. The CMA<\/abbr> has called for such powers in order to increase incentives for businesses to comply with market and merger remedies and to rectify any breaches quickly.<\/p>\n<\/li>\n

  6. \n

    Media enquiries should be directed to 020 3738 6460 or press@cma.gov.uk<\/a><\/p>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    The CMA has taken action against Lloyds Banking Group (Lloyds) for serious breaches affecting thousands of PPI customers.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/96262"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=96262"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/96262\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=96262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=96262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=96262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}