The U.K.'s Competition and Markets Authority, or CMA, issued legal directions to Lloyds Banking Group PLC after the group failed to submit annual payment protection insurance reviews and gave customers incorrect PPI data.
The bank has also previously violated the regulator's PPI order, with six breaches reported in 2016, according to the CMA.
The watchdog took action against Lloyds after discovering that the group had not sent an annual PPI review to 14,000 customers between 2012 and 2018 due to IT problems. Additionally, the group gave 2,884 customers incorrect data on PPI premiums in their annual reviews.
In response, Lloyds has begun issuing apology letters to affected customers along with a refund offer and reminder that they can cancel the policy.