Barclays bank will pay out around £1m to affected customers after it broke rules around Payment Protection Insurance.
Up to 1,306 mortgage payment protection insurance policyholders did not get sent the mandatory annual review of their policies between 2014 and 2017.
The Competition and Markets Authority (CMA) found Barclays breached the Payment Protection Insurance Market Investigation Order 2011.
On Wednesday, the CMA said Barclays was taking steps to remediate affected policyholders and the total payout package is expected to amount to around £1m.
In many of the customers’ cases, they had moved house or changed mortgage provider and had notified Barclays of their new address.
Barclays failed to pass the new address onto the business unit tasked with sending out the annual reviews so they were sent to the customers’ old addresses.
The bank sold the book of mortgage payment protection insurance (MPPI) policyholders in March 2017, but only discovered the historic breach in late 2021.
Barclays notified the CMA of the breach on October 8, 2021, and completed its analysis of which customers were affected on September 30, 2022.
In a letter to Barclays the CMA wrote: “Given the action being taken by Barclays to remediate the affected policyholders, and as Barclays is no longer the PPI Provider of the MPPI book of policyholders affected, the CMA does not consider it necessary to take further formal enforcement action in relation to this breach.
“However, we are recording it on the CMA’s register of breaches and publishing this letter to register our concern. The CMA will monitor Barclays’ future compliance closely.”
A Barclays spokesperson said: “Following a recent review, Barclays will be putting things right for a small number of current and former mortgage PPI policyholders who did not receive annual review statements when they should have.
“We apologise to those impacted and for any inconvenience this may have caused.”