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Nationwide has today been ordered to pay back £2million to thousands of its customers after being found in breach of competition rules.

The refunds come after the Competitions and Markets Authority found that - for a period of six years - the Nationwide didn't remind thousands of its customers with PPI policies in place that they had them.

This is a direct breach of the competition rules - designed to let people keep on top of what they're paying for - and as a result it now has to hand £2million pounds back to those it wronged.

Nationwide also sent out documents with the wrong information to other PPI customers, making it look like the policies cost less than they did.

Adam Land from the Competitions and Markets Authority said: “Nationwide has broken the rules by not sending essential PPI reminders to their customers. 8 years on from our legally-binding Order, it is simply unacceptable that the CMA is having to remind Britain’s biggest banks of their legal obligations.

(Image: PA)

“Nationwide has failed its customers by denying them important information, and the directions we’ve issued today will lead to affected customers receiving the refunds they deserve.

“Such breaches are serious and, if we had the extra powers we’ve proposed to the government, could have resulted in fines.”

The CMA found that over a six-year period, from 2012 to 2017, Nationwide didn't send customers reminders about their policies - meaning people did not have all the relevant information to help them decide if they wanted to continue paying for PPI.

It also meant it was harder for them to shopping around effectively and might even have forgotten they were paying for the policy entirely.

Nationwide was also found to have sent out inaccurate reminders between 2012 and 2019.

These had incorrect information in them about the yearly cost of insurance, meaning customers might have thought their PPI was cheaper than it was.

(Image: Getty)

Nationwide's Sara Bennison said: “The PPI Order requires providers to send customers with PPI an Annual Review to remind people of the cover they have in place and alert them to the cost, giving them the chance to shop around if required.

"Unfortunately, in these cases the Society failed to send out an Annual Review or sent one with incorrect information. The Society has rectified the issues and is in the process of providing redress to affected customers. On this occasion we fell below our usual high standards and for this we apologise.”

On top of the £2million it's being required to pay, Nationwide said it has already repaid more than £100,000 to customers who did not receive reminders.

The building society said it's in the process of refunding thousands more customers who received inaccurate information, with total repayments of up to £2 million expected.

Nationwide said customers don't need to contact them, and redress will be paid directly into their current account where their premiums are paid from.

Where the account is closed, it will send them a cheque.

Nationwide said if they don't have a valid address to send a cheque, customers can call them one 0800 30 20 15 from the UK or +44 1793 65 67 89 from abroad and they will make sure the details are passed to the correct team.