The CMA (Competition and Market Authority) has revealed that it recently passed correspondence to Aviva Insurance and Lloyds bank, after the CMA found out that the two companies had broken rules regarding payment protection insurance ppi claims. The rule break committed by the financial institutions amounted to the companies passing out obsolete and wrong information to their customers.
People who have a ppi insurance policy are supposed to receive every twelve months a financial statement which shows, how much their ppi policy has cost them, plus the information that they possess the legal right to immediately cancel their policy, if they wish to do so.
The CMA said that Lloyd’s, who hold the majority of outstanding ppi claims cases in the UK, did not pass this information on to their customers. And when they did do so, the facts stated were incorrect.
Moneymarketing.com had more details about the breach by Lloyds and Aviva:
According to the CMA’s letter, about 4,700 customers received annual reviews with incorrect figures in 2015 for “estimated total remaining charge for loan” and “the total remaining amount you must pay back”.
Lloyds said the mistake was due to a coding error.
The CMA says customers of some of Aviva’s distributors – Cheltenham & Gloucester, National Australia Group, Coventry Building Society, Danske Bank, Leeds BS and Norwich & Peterborough BS – also received annual statements with incorrect calculations for amounts paid over the previous 12 months.
Aviva has been asked to send apology letters to those impacted.
The letter also says 207 Lloyds customers had been overcharged premiums since March 2013 due to the inability to freeze premiums after the records were moved to a new IT platform.
It also explains that, after a review, Lloyds discovered that 875 “non-automated mortgage repayment insurance customers” had an active policy and should have received an annual review before 2015/16, but had not.