Lloyds Banking Group’s insurance department was fined £90 million for slotxo sending 9 million misleading letters between 2009 and 2017 about home insurance.The bank claimed in the letter that the renewal bid was “Competitive price”
But the Financial Conduct Authority (FCA) said Lloyds did not verify the validity of the claims.It is one of the largest fines the FCA gives to the retail banks that control the sector.Companies must ensure that
communications with customers are clear, fair and not misleading,” said Mark Stewart of the FCA.Millions of customers have received renewal letters claiming that they are being offered competitive prices that are unfounded and pose a serious risk to consumers.
FCA admits banks have begun removing the phrase The “competitive price” was released from 2009, but many renewals were found to remain wordy until 2017.The regulator said the reinsurance premiums offered to customers tended to be higher than the premiums offered to new customers. or customers who choose to change insurance providers