CMA Orders RBS and Santander to Fix PPI Breaches
23 August 2019 - 4:51PM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority Friday ordered Royal
Bank of Scotland Group PLC (RBS.LN) and Santander U.K. to fix PPI
breaches after they failed to send, or sent inaccurate, annual
reminders.
The regulator said RBS failed to remind almost 11,000 customers
that they had payment protection insurance--or PPI--for up to six
years and that many of these may not have known they even had
it.
It added that Santander breached the order by sending out annual
reminders containing incorrect information to over 3,400 of its
mortgage PPI customers from 2012-2017.
The CMA has ordered both RBS and Santander to appoint an
independent body to audit their PPI process to ensure similar
incidents don't happen again.
The CMA said it isn't the first time RBS and Santander have
breached the order, with both banks being warned to improve their
PPI practices in 2016.
"These are serious issues that, in the future, may result in
fines if the government gives us the powers we've asked for," CMA's
Senior Director of Remedies, Business and Financial Analysis Adam
Land said.
"For now, we expect RBS to repay all affected customers quickly,
and for both RBS and Santander to make sure that similar breaches
do not happen again," he added.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 23, 2019 02:36 ET (06:36 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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