UK CMA orders RBS and Santander to fix PPI breaches
Topics: CMA RBS SANTANDER BREACH UK
They must also put in place procedures to ensure that similar incidents do not happen again.
In addition, RBS has now written to those affected, providing a reminder of their right to cancel their policy and has so far paid out over £1.5m in refunds to customers.
Following an investigation into PPI by the Competition Commission in 2011, a legally-binding Order was put in place, which requires – among other things – that customers receive an annual reminder from their PPI provider that clearly sets out how much they’ve paid for their policy, the type of cover they have, and reminds them of their right to cancel.
RBS failed to provide reminders to almost 11,000 of its customers for up to 6 years, meaning those affected were unable to fully assess whether they wanted to continue paying for PPI, and were stopped from shopping around effectively.
Moreover, many customers may not have even been aware they still had PPI.
Santander breached the Order by sending out annual reminders containing incorrect information to over 3,400 of its mortgage PPI customers from 2012–2017.
It must now appoint an independent body to review its PPI processes and continue to maintain its systems to prevent further breaches.
The results of the audits will be fed back to the CMA.
This is not the first time RBS and Santander have breached the Order, with both banks being warned by the CMA to improve their PPI practices in 2016. ■