The U.K. Competition and Markets Authority ordered Nationwide Building Society to refund up to £2 million to its customers, saying the company provided inaccurate information about the cost of clients' payment protection insurance and failed to remind them that they purchased it.
Nationwide failed to provide customers with information they needed from 2012 to 2017 to help them decide if they wanted to continue paying for PPI, the CMA said, adding that the company also sent out inaccurate information from 2012 to 2019 that may have misled customers into thinking their PPI was cheaper than it actually was.
Nationwide, which has already repaid more than £100,000 to clients who did not receive reminders, is refunding customers who received inaccurate information, with the total repayments expected to amount to £2 million. The CMA also required the building society to appoint an independent body to audit its PPI processes.
The regulator noted that it cannot impose fines for such breaches, but it has called for powers to do so.
To date, the CMA has taken action against five of the largest PPI providers in the U.K., most recently Royal Bank of Scotland Group PLC and Santander UK PLC, for breaching a 2011 order requiring that customers be sent annual reminders on the price they paid for their policy, the type of cover they have and reminders of their right to cancel.