The £1m in compensation, made up of refunds and goodwill payments, will average out to around £750 per affected customer.

In a statement released by the CMA, Alistair Thompson, director of remedies, business and financial analysis, said: “Barclays failed to send Annual Reviews to up to 1,306 of its former Mortgage Payment Protection Insurance (MPPI) policyholders between 2014 and 2017.

“In many cases these customers held both a mortgage and a MPPI policy with Barclays, had moved house/changed mortgage provider, and notified Barclays (as their mortgage or banking provider) of their new address.

“Barclays failed to pass the new address onto the business unit tasked with sending out the Annual Reviews in respect of the MPPI policy, which these customers continued to hold with Barclays. These Annual Reviews were therefore sent to the customers’ old addresses, with the effect that these customers then stopped receiving Annual Reviews in subsequent years.

“Barclays sold the book of MPPI policyholders in March 2017, but only discovered this historic breach in late 2021. Barclays notified the CMA of the breach on 8 October 2021 and completed its analysis of which customers were affected on 30 September 2022.”

A Barclays spokesperson told Scottish Financial News: “Following a recent review, Barclays will be putting things right for a small number of current and former Mortgage PPI policyholders who did not receive Annual Review statements when they should have. We apologise to those impacted and for any inconvenience this may have caused.”

The CMA noted that Barclays will take the following steps:

• Write to all affected policyholders, informing each policyholder of Barclays’ failure to send an annual review(s);
• Provide an up-to-date annual review statement, to cover the period between the date of the letter and the 12 months preceding it;
• Offer all affected customers a gesture of goodwill payment;
• Offer the vast majority of affected customers the opportunity to submit a claim for a full refund of premiums from the date of the first missed Annual Review.

Mr Thompson added: “Given the action being taken by Barclays to remediate the affected policyholders, and as Barclays is no longer the PPI Provider of the MPPI book of policyholders affected, the CMA does not consider it necessary to take further formal enforcement action in relation to this breach.

“However, we are recording it on the CMA’s register of breaches and publishing this letter to register our concern. The CMA will monitor Barclays’ future compliance closely.”