The apology letters explained the error and offered to refund PPI premiums paid out since the date of the first missing statement – as well as 8% interest – to those who cancel their policy as a result.
One of the measures introduced in the 2011 order that followed the Competition Commission’s investigation into PPI was that all customers would receive an annual statement from their provider setting out the cost of PPI and including a reminder of their right to cancel.
Investigation into the issue revealed that, over the last 3 annual statement periods, a total of 9,404 credit card PPI customers had not received their statements. Additionally 740 customers on a specific mortgage PPI scheme had not received annual statements since the CC order came into force in 2012.
Adam Land, the CMA’s Senior Director of Remedies, Business and Financial Analysis, said:
"The annual statement was an important measure resulting from the market investigation which ensures customers know they have a PPI policy, how much they are spending on it and reminds them of their right to cancel or switch.
"Barclays has now taken the necessary steps to alert and recompense affected customers - as well as to ensure that there is no repeat in future. We trust that the extra reporting requirements we’ve put in place will confirm this."
