You are here: Home - News -

Barclays given ticking off by regulator over PPI breach

by: Paloma Kubiak
  • 06/08/2018
  • 0
Barclays given ticking off by regulator over PPI breach
The competition regulator has taken action against Barclays for failing to send obligatory annual reminders to payment protection insurance (PPI) customers for the second time.


PPI providers are required to send annual reminders to customers setting out how much they’ve paid in and their right to cancel a policy.

But in March 2018, Barclays reported to the Competition and Markets Authority (CMA) that 2,265 customers who held a PPI policy on their Littlewoods credit cards did not receive an annual statement between October 2016 and October 2017.

It attributed the breach to a ‘technical problem’ in transferring customers to its computer system. Since then it has refunded £336,000 to affected customers.

Following the breach, the CMA issued directions to Barclays which means it must notify the regulator within 14 days of non-compliance, bring in enhanced compliance training and an automated system to tally up PPI customers against annual statements sent.


Repeat offender

This is not the first time Barclays has flouted PPI regulations. In April 2015, Barclays reported 52 customers had not received their annual credit card PPI statement. But its internal investigation revealed that actually 9,404 Barclays’ customers had not been sent their statements.

Further, in November 2015, Barclays reported that 740 mortgage PPI customers had not received their expected review.

Adam Land, the CMA’s senior director of remedies, business and financial analysis, said: “The annual reminder is an important measure so customers know they still have a PPI policy and how much it is costing them each year, as well as their right to cancel or switch.

“This is Barclays’ second breach of the PPI order. As a result, we are issuing legal directions which can be enforced by a court, to ensure they comply with the order.

“We now require assurances from Barclays they have now put adequate systems in place to prevent a similar breach from occurring again.”

A Barclays spokesperson, said: “Between October 2016 and October 2017 a small number of PPI customers were not sent the annual review statements which they were entitled to receive. This issue has now been resolved and all customers have received their missing statements.

“We have written to all affected customers to apologise unreservedly and to outline how we will recompense them where they would have otherwise cancelled their policy.

 “We take this matter extremely seriously and have conducted an internal investigation to ensure all stringent controls and policies continue to be upheld.”


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
rented homes
Calls to scrap deposits for renters

Large, up-front deposits paid by renters should be scrapped, a leading think tank has said.