CMA Toughens Action Against Lloyds Bank – PPI


Lloyds bank has committed repeated breaches of the Payment Protection Insurance Market Investigation Order 2011 (the “Order“) by failing to inform customers that they have a policy, how much it costs and that they have the right to cancel or change providers. Under the Order, customers are meant to receive this information annually.

Breaches by Lloyds Bank had been reported to the Competition and Markets Authority (“CMA“) and discussed in 2017, with suggestions as to how the lender could prevent this from reoccurring. The latest reports, however, highlight that it failed to send PPI reports to over 14,000 customers since 2012 and had provided wrong information on premiums.

The lender has been issued with legal directions by the CMA to carry out monthly checks, provide more detailed information on its compliance, report breaches within 14 days and organise a review of its compliance systems each year by an independent body.

Although these directions can be enforced by a court, the CMA does not have the authority to impose monetary penalties for this kind of breach.