Lloyds Fined GBP90.7 Million by UK Regulator Over Misleading Insurance Renewals

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 [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

July 08, 2021 11:20 ET (15:20 GMT)

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