The Competition and Markets Authority (CMA) has told Lloyds Banking Group to improve its systems after "serious" breaches to its payment protection insurance (PPI) process.
The CMA found Lloyds failed to send annual PPI reviews and provided incorrect data to thousands of customers, breaching the authority’s PPI order for the seventh time in two years.
Following the implementation of the Payment Protection Insurance Market Investigation Order 2011, PPI customers must receive an annual review from their provider highlighting the figure paid on the policy and their right to cancel.
Lloyds was in breach of this order when it failed to provide an annual review to 14,000 customers between 2012 and 2018 because of IT problems.
The CMA also found the bank provided incorrect information on PPI premiums to 2,884 customers.
Under the CMA’s legal directions, Lloyds must now implement systems and procedures to prevent future failings.
In August the CMA issued similar demands against Barclays after it failed to provide a reminder to 2,265 Littlewoods' credit card PPI customers, attributing the error to technical problems.
Adam Land, senior director of remedies, business and financial analysis at the CMA, said the authority was disappointed Lloyds has again failed to provide important reminders or provide accurate data to its customers.
He said: "These are serious breaches and, as we did with Barclays in August, we are issuing Lloyds with legal directions which can be enforced by a court to ensure they comply.
"Following a series of breaches, we are now requiring legal assurances from Lloyds that they have measures in place to prevent similar breaches from ever happening again."
The CMA reported Lloyds has begun sending apology letters and reminders to affected customers.
rachel.addison@ft.com
