Share Search
Visit the Share Search
RBS, Santander ordered to fix PPI processes by watchdog
23rd Aug 2019 08:21
(Sharecast News) - The UK competition watchdog on Friday ordered Royal Bank of Scotland and Santander to appoint auditors to assess their procedures for handling payment protection insurance (PPI) miss-selling claims.
The Competition and Markets Authority (CMA) said RBS had failed to provide annual reminders to 11,000 customers, while RBS had included incorrect information in PPI-related communication to 3,400 mortgage customers
Both have been told to appoint an independent auditor to assess their PPI processes.
The failures were in contravention of a 2011 order after the Competition Commission's investigation into PPI, which required providers to send customers an annual reminder setting out how much was paid for their policy, the type of cover they had, and their right to cancel.
"It is unacceptable that some banks aren't providing PPI reminders - or are sending inaccurate ones - eight years after our order came into force," said CMA director Adam Land.
"The legally binding directions we've issued today will make sure that both RBS and Santander now play by the rules."
Billions of pounds in compensation have been paid out during the eight year scandal. Consumers have until Thursday to make a claim. The insurance was sold in conjunction with loans, credit cards and mortgages to cover repayments if borrowers fell ill or lost their jobs. However, in thousands of cases customers would never have been able to make a claim.
The Competition and Markets Authority (CMA) said RBS had failed to provide annual reminders to 11,000 customers, while RBS had included incorrect information in PPI-related communication to 3,400 mortgage customers
Both have been told to appoint an independent auditor to assess their PPI processes.
The failures were in contravention of a 2011 order after the Competition Commission's investigation into PPI, which required providers to send customers an annual reminder setting out how much was paid for their policy, the type of cover they had, and their right to cancel.
"It is unacceptable that some banks aren't providing PPI reminders - or are sending inaccurate ones - eight years after our order came into force," said CMA director Adam Land.
"The legally binding directions we've issued today will make sure that both RBS and Santander now play by the rules."
Billions of pounds in compensation have been paid out during the eight year scandal. Consumers have until Thursday to make a claim. The insurance was sold in conjunction with loans, credit cards and mortgages to cover repayments if borrowers fell ill or lost their jobs. However, in thousands of cases customers would never have been able to make a claim.