More than 7000 Nationwide Building Society customers are due Compensation after the Competition and Markets Authority (CMA) discovered the building society did not inform customers of the cost of their PPI or that they could cancel their policy. The CMA stated that this “meant that people could have been stopped from shopping around effectively or might not have known they were still paying for PPI”.
In 2011, the CMA instructed PPI providers to send customers annual statements which show clearly how much they have paid for their policy, the type of cover, and reminders of their right to cancel. Nationwide breached this order by failing to provide these updates to customers between 2012 and 2017 and also by sending inaccurate reminders to some customers between 2012 and 2019.
Adam Land at the CMA, said: “Nationwide has broken the rules by not sending essential PPI reminders to their customers. Eight 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.”
As well as paying Compensation to customers, the CMA have also instructed Nationwide to appoint an independent body to audit its PPI processes.
Nationwide are providing refunds to affected customers directly into their accounts or by cheque.
The CMA have also ordered RBS, Santander, Lloyds and Barclays to take action for similar failings.