The Competition and Markets Authority (CMA) has ordered both RBS and Santander to appoint independent bodies to audit their payment protection insurance (PPI) process, after the banks failed to send, or sent inaccurate, annual PPI reminders.
Loan customers who were mis-sold PPI have until 29 August 2019 to claim for compensation.
The CMA says that RBS failed to provide reminders to almost 11,000 of its customers for up to 6 years, meaning those affected were unable to fully assess whether they wanted to continue paying for PPI, and were stopped from shopping around effectively.
RBS has now written to those affected, providing a reminder of their right to cancel their policy and has so far paid out over £1.5m in refunds to customers.
As for Santander, the bank sent out annual reminders containing incorrect information to over 3,400 of its mortgage PPI customers from 2012-2017.
It must now appoint an independent body to review its PPI processes and continue to maintain its systems to prevent further breaches.