The UK’s competitions watchdog has ordered Barclays to pay up to £1m in compensation to at least 1,000 of its mortgage customers, over its failure to comply with rules around Payment Protection Insurance (PPI) policies.
The UK’s Competition and Markets Authority (CMA) said Barclays should pay compensation to as many 1,306 of its mortgage customers, over its failure to send annual review documents to those PPI policyholders between 2014 and 2017.
The CMA requires all companies selling PPI to send annual reminders to customers that clearly set out the cost of their policies, the type of cover they have, and the cost of their PPI policies.
Barclays breached the order by failing to send reminders to up to 1,306 of its customers, who were not given the reminders after informing the bank they had moved house.
The bank reported the breach to the CMA in 2021, shortly after becoming aware of its failure to provide the reminders to customers who had informed Barclays of their new addresses.
Barclays’ £1m payout will see affected customers receive average compensation payments of around £750 each over the breaches of the PPI laws, which meant some customers may have kept their PPI policies longer than necessary or stopped checking for cheaper or better alternatives.
The CMA’s senior director of remedies, business, and financial analysis, Adam Land, said: “It’s important that all PPI providers take notice – we won’t hesitate to take action, as we have done here, if customers have lost out.”
A Barclays spokesperson said: “Following a recent review, Barclays will be putting things right for a small number of current and former Mortgage PPI policyholders who did not receive Annual Review statements when they should have. We apologise to those impacted and for any inconvenience this may have caused.”