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Barclays Plc will refund more than a 1,000 customers an average of £750 ($858) after it failed to send them reminder of its payment protection insurance (PPI) policies.
The total payout of up to £1 million is made up of refunds and goodwill payments, according to a Competition & Markets Authority (CMA) statement on Wednesday.
The CMA requires providers to send annual reminders to customers that set out clearly the cost of their policy, the type of cover they have and remind them of their right to cancel. Barclays breach, which it discovered late last year, involved a failure to send reminders to up to 1,306 former policy holders between 2014 and 2017.
Barclays discovered the breach following a review and said it would be putting things right for a “small number†of current and former policyholders. “We apologize to those impacted and for any inconvenience this may have caused,†a spokesperson said in an emailed statement.
The long-running scandal, which involved the misselling of insurance to British consumers by British banks, is the most expensive compensation program in history for UK lenders, with firms from Lloyds Banking Group Plc to NatWest Group Plc paying out billions of pounds.
—Bloomberg