A number of Lloyds customers have received payouts after an investigation found the bank sent wrong information to a number of PPI account holders.
Competition watchdog, the CMA, today said the bank breached pay-out rules by sending out incorrect PPI statements to 8,800 customers.
Under current rules, PPI providers are legally required to send customers annual reminders that set out the cost of their policy, the type of cover they have and their right to cancel.
However, the CMA said 8,800 people were sent incorrect information in annual reminders about PPI on their mortgage policies.
It said in some cases, the monthly amount policyholders could claim on their insurance was displayed in the wrong section - which could have confused customers.
In another breach, the amount in the annual reminders was incorrect.
This is not the first time Lloyds has failed to comply with PPI regulations.
In 2018, the CMA took formal enforcement action against Lloyds for misinforming PPI customers.
Lloyds has since admitted that it broke the rules 18 times over an eight-year period. The banking group has since paid out £957,000 for these breaches.
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The CMA said it asked Lloyds to contact all customers with an open policy who were affected by the most recent breach, and offer refunds to those eligible.
A Lloyds spokeswoman told The Mirror all customers have now been contacted.
Adam Land, at the CMA, said: "It's a real concern that PPI providers are still breaking the rules by sending inaccurate PPI reminders despite a clear, well-established Order from the CMA.
"These failures can mean people end up paying for insurance they no longer need.
"We welcome the fact that Lloyds' has refunded – or committed to refund – customers £975,000 and we will monitor the bank closely to make sure those affected by the latest breaches receive the refunds to which they are entitled.
"It's important that all PPI providers take notice – we will continue to act if providers carry on breaking the rules."
