The Competition and Markets Authority (CNA) has taken action against Cardif Pinnacle, and written to Nationwide and Lloyds, after they failed to provide accurate annual PPI reminders.
The CMA has now issued Cardif Pinnacle with legally binding directions ordering it to appoint an independent body to audit its payment protection insurance (PPI) processes, and must also put in place measures to make sure similar incidents “do not happen again”.
All PPI providers are subject to a CMA Order which requires them to send customers annual reminders that clearly set out how much they have paid for their policy, the type of cover they have, and reminds them of their right to cancel.
The CMA said that since 2012, Cardif Pinnacle has sent more than 14,800 “inaccurate” reminders to 7,400 customers, meaning those affected were unable to assess accurately whether they wanted to continue paying for PPI or change providers.
The company is now in the process of sending apology letters to those affected, which will remind them of their right to cancel at any time.
The CMA has also written publicly to Lloyds and Nationwide, after both breached the Order again. These breaches were discovered following audits imposed on them by the CMA for previous breaches in 2018 and breaches in 2019 respectively.
Lloyds breached the CMA’s Order 18 times over an eight-year period. It failed to send reminders, or sent reminders containing inaccurate information, to more than 10,000 customers.
The CMA said Nationwide also failed to provide annual reminders to more than 3,000 customers over a four-month period, meaning some customers may not have been aware they still had PPI.
Adam Land, senior director of remedies, business and financial Analysis, said: “If providers fail to send important information on PPI policies, people could end up paying for insurance they no longer need. Not having this information also makes it harder to look around for a better deal.
“That’s why we continue to act when we see PPI providers breaking the rules. We’ll be keeping a close eye on these firms – and others in the sector – to make sure they treat their customers fairly.”