The Competition and Markets Authority (CMA) has ordered RBS and Santander to appoint an independent body to audit their payment protection insurance (PPI) processes.
Following an investigation into PPI in 2011, customers must receive an annual reminder from their PPI provider that clearly sets out how much they’ve paid for their policy, the type of cover and a reminder of their right to cancel.
RBS — which failed to provide PPI reminders to almost 11,000 customers — and Santander — which sent out annual reminders containing incorrect information to over 3,400 of its mortgage PPI customers from 2012–17 — must put in place procedures to ensure that similar incidents do not occur in the future.
Both banks were previously warned to improve their PPI processes in 2016.
“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 Adam Land, the CMA’s senior director of remedies, business and financial analysis.
“The legally binding directions we’ve issued today will make sure that both RBS and Santander now play by the rules.”
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