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Lloyds PPI customers could be due refunds following breach

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18/10/2018

Lloyds PPI customers could be due refunds after the bank failed to send vital information to customers.

Lloyds PPI letters

The Competition and Markets Authority (CMA) told the banking group that it must improve its systems. This followed serious breaches to the PPI process.

Lloyds PPI customers did not receive annual reviews of their insurance policy and they also provided incorrect data to thousands of customers.

Lloyds PPI breaches

In just two years, the Lloyds PPI process breached seven PPI orders. This included failing to provide over 14,000 customers with their annual review between 2012 and 2018.

The PPI Market Investigation Order 2011 was implemented by the CMA. Following the huge mis-selling scandal, the order states that PPI customers must receive an annual review from their provider, the review highlights the figure paid on the policy and the customer’s right to cancel.

As Lloyds did not provide this review to 14,000 customers, they could be unaware that they were mis-sold PPI. The deadline to make a claim is now less than a year away, giving customers a small time window to make a claim.

While Lloyds have argued that only a small number of credit card customers were affected, the average PPI claim is worth £2,000. The potential total payout of £28m could be kept by Lloyds after the deadline passes.

Lloyds PPI Commission

If Lloyds PPI customers find that their lender took more than 50 percent commission from the product sale, they could also be owed money even if the initial policy wasn’t mis-sold. This is because more than 50 percent commission amounts to an unfair financial relationship. You can read more on the Plevin rule here.

Do you suspect that your lender was paid an unfair level of commission for the sale of your PPI policy? Get in touch today to discuss your claim as you could receive your entire policy cost as compensation.