Nationwide to pay £2million back to thousands of customers over not sending PPI reminders
OVER 7,000 Nationwide customers are set to share £2million in refunds after it was found that the bank failed to send them PPI information.
Between 2012 and 2019, the bank broke competition rules by failing to send reminders to customers about their PPI policy, or sending them inaccurate information.
The Competition and Markets Authority (CMA) has ordered Nationwide to refund all customers who received inaccurate information.
It must also appoint an independent body to audit its PPI processes and report information back to the CMA.
These refunds are different to those being paid out to customers who were mis-sold Payment Protection Insurance (PPI).
Customers were mis-sold PPI if the policy was not explained to them properly, or if they were sold a policy they weren't eligible for.
These refunds are being handed out to Nationwide customers are for customers that had a PPI policy, but were not sent annual reminds about the details of their policy.
Since 2011, banks offering PPI have been required to remind customers how much they have paid for PPI, the type of cover they have, and their right to cancel.
But, it was found that Nationwide had failed to send these reminders to many customers, or had misled customers into thinking their PPI was cheaper than it actually was.
By doing so, customers were prevented from shopping around for a better deal, or ended up paying for a policy they didn’t want.
If you have been affected, you will be notified by Nationwide and given details of your refund.
How will I know if I am eligible for a refund?
IF you took out a PPI policy on a Nationwide account between 2012 and 2019, you could be due a refund.
Nationwide have been instructed to issue apology letters and provide details of potential refunds to affected customers.
This process is expected to begin in January 2020, and details of the process will likely be released soon.
You do not need to do anything, as Nationwide are required contact all customers that are eligible for a refund.
The bank has been instructed to contact affected customers again if they don't receive response from their initial correspondence.
You can contact Nationwide customer service on 0800 055 66 11 if you have any questions about your current policy.
Since 2018, other banks including RBS, Santander, Barclays and Lloyds have also been directed to issue customer refunds for failing to provide accurate information about PPI policies.
Adam Land, Senior Director of Remedies, Business and Financial Analysis at the CMA, said:
“Nationwide has broken the rules by not sending essential PPI reminders to their customers. 8 years on from our legally-binding Order, it is simply unacceptable that the CMA is having to remind Britain’s biggest banks of their legal obligations.
“Nationwide has failed its customers by denying them important information, and the directions we’ve issued today will lead to affected customers receiving the refunds they deserve.
“Such breaches are serious and, if we had the extra powers we’ve proposed to the government, could have resulted in fines.”
The CMA is currently unable to impose fines on banks, and can only direct them to refund customers.
But, they are calling on the government for the power to set fines for offences such as this.
The Sun has contacted Nationwide for comment and will update this story when we receive a response.
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