FIN. TeamThe CMA has written to Tesco Bank acknowledging the steps it has taken to end the breach of the Private Motor Insurance Market Investigation Order 2015 (the Order). Article 3 of the Order requires that any additional cost of the No Claims Bonus Protection has to be made clear to customers so they can make an informed decision. Tesco Bank breached the Order when they sent out renewal letters to 124,451 customers providing misleading information about the financial benefit of removing the No Claims Bonus Protection.
On 20 August 2021, Tesco Bank notified the CMA of its breach and took action to prevent the breach from happening again including writing to all affected customers to offer a refund to those who would have removed No Claims Bonus Protection had they known the correct price reduction. The CMA considers Tesco Bank has taken appropriate measures and will not be taking any formal enforcement action but will monitor Tesco Bank’s future compliance closely.
