Barclays and its subsidiary Barclaycard had failed to provide annual statements to 9,404 credit card customers and 740 mortgage holders, which include an explanation about their rights to their payment protection insurance since 2012.
Barclays’ failure to contact and explain to consumers about their payment protection insurance makes these consumers immediately eligible to receive their payment protection insurance including an 8 per cent interest rate.
Adam Lands, senior director at the Competition and Markets Authority (CMA) explains: “The annual statement [is] an important measure resulting from the market investigation which ensures customers know they have a PPI policy, how much they are spending on it and reminds them of their right to cancel or switch.
“Barclays has now taken the necessary steps to alert and recompense affected customers – as well as to ensure that there is no repeat in future. We trust that the extra reporting requirements we’ve put in place will confirm this.”
“Last year we identified a number of Barclays and Barclaycard customers who, due to a technical issue, had not been sent their annual PPI statements. We have written to those customers to apologise and outline how we will remediate them where they believe they would have cancelled their policy, had they received the statements.
“We apologise unreservedly to those customers affected and have put in place a number of controls to prevent this from happening again.”