The Competition and Markets Authority (CMA) has issued Barclays with legal directions requiring it to put appropriate systems and procedures in place to prevent a similar incident from happening again in the future.

Following an investigation into payment protection insurance (PPI) by the Competition Commission in 2011, one of the measures introduced in an Order was that customers should receive an annual reminder from their provider setting out clearly how much they had paid in, and their right to cancel the policy.

In the period from October 2016 – October 2017, Barclays failed to provide a reminder to 2,265 Littlewoods credit card PPI customers. It attributed the breach to a technical problem in transferring the customers to its computer system.

Following that breach, Barclays wrote to all affected customers, providing a reminder of their right to cancel the policy and the offer of a refund. From this communication, it has so far paid out almost £336,000 in refunds to customers.

This is not the first time Barclays has breached the Order, having reported several substantive breaches to the CMA in 2015 for not providing annual reminders to almost 10,000 PPI customers.

Adam Land, the CMA’s Senior Director of Remedies, Business and Financial Analysis, said:

The annual reminder is an important measure so customers know they still have a PPI policy and how much it is costing them each year, as well as their right to cancel or switch.

This is Barclays’ second breach of the PPI order. As a result, we are issuing legal directions which can be enforced by a Court, to ensure they comply with the order.

We now require assurances from Barclays they have now put adequate systems in place to prevent a similar breach from occurring again.

Notes to editors

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
2. For CMA updates, follow us on Twitter, Facebook and LinkedIn.
3. Barclays is in breach of the Payment Protection Insurance Market Investigation Order 2011 (the PPI Order). One of the requirements of the order is that all PPI customers would receive an annual reminder from their provider setting out information including how much they had paid into their policy.
4. Directions are a formal enforcement instrument, which can be used to ensure that an Enterprise Act 2002 remedy imposed by the CMA, in this case the PPI Order, is complied with fully.
5. Barclays notified the CMA of the breach in March 2018.
6. The CMA does not currently have the power to impose financial penalties for breaches of this kind. The CMA has called for such powers in order to increase incentives for businesses to comply with market and merger remedies and to rectify any breaches quickly.
7. Media enquiries should be directed to 020 3738 6460 or press@cma.gov.uk.

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The Attorney General’s Office helped more victims and their families get justice last year, after 137 criminals had their sentences increased under the Unduly Lenient Sentence (ULS) scheme.

New statistics out today reveal the Law Officers (Attorney and Solicitor General) referred 173 sentences to the Court of Appeal in 2017 because they believed them to be far too low.

The ULS scheme allows victims of crime, prosecutors and members of the public to ask for certain Crown Court sentences to be reviewed if they think the sentence is far too low. The Law Officers then ask the Court of Appeal to review the sentence to have it increased if they believe the judge made a gross error in sentencing.

Sentences were increased for crimes including murder, manslaughter, rape and other serious sexual offences, causing death by dangerous driving, modern slavery, false imprisonment, child cruelty, burglary, robbery, perverting the course of justice, and drugs.

Of the 137 offenders who had their sentences increased, these related to crimes in the following categories: Rape and serious sexual offences (58), homicide and related (15), acquisitive offences (such as burglary, theft, and fraud) (19), serious assault offences (19), firearm-related (8), drug-related (4), kidnap and false imprisonment (2), and other offences (12).

The Solicitor General Robert Buckland QC MP said:

The Unduly Lenient Sentence scheme allows victims of crime, their families and the public to ask for a review of certain sentences that they believe are far too low.

We only have 28 days from the date of sentencing to refer a case to the Court of Appeal. Unusually, there is no way to extend this deadline – this means we require a referral very early in the process to be able to deal with it in time.

A sentencing exercise is not an exact science and in the vast majority of cases, judges get it right. For an offence there is a range within which a judge might sentence properly. The scheme is available to ensure that the Court of Appeal can review cases where there may have been a gross error in the sentencing decision.

In 2017, 943 referrals were received by the Attorney General’s Office, a slight increase from the 837 referrals the previous year. The Attorney and Solicitor General referred 173 sentences to the Court of Appeal that they thought needed looking at again, compared to 190 in 2016.

137 sentences resulting in increases is a very small proportion of the 80,000 Crown Court cases heard each year, but the ULS scheme is there to allow adjustment of those sentences where an increase is warranted.

The scheme was extended last year to include an additional 19 terror-related offences including supporting extremist organisations, encouraging acts of terrorism or failing to disclose information about a terrorist attack.

The scheme was introduced after public outcry over the lenient sentencing of the offenders involved in the 1986 rape of 21 year old Jill Saward. The victim was brutally raped by a gang of robbers at her father’s vicarage.

Anyone can ask for a Crown Court sentence to be reviewed and you can also follow the progress of referrals made to the Attorney General’s Office.

There are only 28 days from the date of sentencing to refer a case to the Court of Appeal. This deadline cannot be extended. In order to ensure we have time to properly consider a case we ask that referrals are made early in the process.

The ULS scheme only applies to certain Crown Court offences. Details of the offences that are covered by the ULS scheme are listed on our website.