Lloyds Fined GBP90.7 Million by UK Regulator Over Misleading Insurance Renewals
July 08 2021 - 11:32AM
Dow Jones News
By Sabela Ojea
The Financial Conduct Authority said Thursday that it has issued
a 90.7 million pounds ($125.2 million) fine to Lloyds Banking Group
PLC relating to the way it handled home insurance renewals between
2009 and 2017.
The U.K. regulator said the lender failed to communicate
renewals in a clear, fair and not misleading way, adding that the
bank also didn't apply a promised discount based on customer
loyalty.
The FCA said that the U.K. bank used words such as "competitive"
when sending communications to around 2.7 million customers and
that the discount--aimed at 500,000 home insurance customers--was
never intended to be applied.
Lloyds didn't check if the price of the renewals were
competitive, the U.K. bank acknowledged.
"Lloyds has paid more than GBP13.6 million to approximately
350,000 customers in relation to the discount issue, meaning
customers do not have to take any steps to receive payment," the
bank said.
The FCA noted that Lloyds's voluntarily made those payments.
A spokesperson for Lloyds also said that it has improved its
processes and how it communicates with customers.
Shares at 1451 GMT were down 1.46 pence, or 3.1%, at 45.33
pence.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
July 08, 2021 11:20 ET (15:20 GMT)
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