More than 1,000 Barclays customers will share a £1million payout after the bank failed to send them reminders about payment protection insurance ( PPI ).
The average payment will be around £750.
PPI was widely mis-sold by banks, credit card providers and other firms for decades.
This led to a wave of payouts, with consumers getting around £38billion back - though many policies were legitimately sold.
The Competition & Markets Authority (CMA) found that Barclays failed to send a yearly reminder to customers of PPI policies.
CMA rules say that PPI providers must send yearly reminders to customers that set out clearly the cost of their policy, the type of cover they have and remind them of their right to cancel.
The CMA said Barclays breached these rules by failing to send reminders to up to 1,306 of its former mortgage PPI policyholders between 2014 and 2017.
These customers, who held both a mortgage and a PPI policy with Barclays, had moved house and told their bank their new address.
But these customers never got any reminders from Barclays.
Barclays only discovered this breach in late 2021, and reported it to the CMA.
Not getting reminders meant customers may have kept their policies for longer than they needed or stopped checking for cheaper or better alternatives.
This may have cost them money, the CMA said.
The payout, of up to £1million is made up of refunds and goodwill payments.
CMA senior director of remedies, business and financial analysis Adam Land said: “Barclays will pay customers up to £1million after breaching the CMA's PPI Order.
"That’s an average payment of around £750 per customer, which is particularly important as the cost-of-living crisis bites. We will now work with Barclays to ensure these payments are made to customers.
“It’s important that all PPI providers take notice – we won’t hesitate to take action, as we have done here, if customers have lost out.”
A Barclays spokesperson said: “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 cannot fine businesses for this sort of breach, but wants the power to do so.
Last month Martin Lewis said anyone with PPI pay-out in the past four years could get hundreds of pounds extra .
The deadline to bring a new PPI claim closed in August 2019.
But speaking on the Martin Lewis Money Show Live, the MoneySavingExpert founder said there was another way consumers with PPI payouts may be due some extra cash.
"There will be a lot of you out there that have had PPI payouts since then," Martin said.
It's all down to tax. Some PPI payouts were taxed on the interest added to the cash lump sum.
The tax was meant to reflect the fact that the interest was a form of savings, and therefore taxable.
However, savers have been able to earn up to £1,000 a year in savings interest before paying tax since April 6, 2016.
That's for basic-rate taxpayers, and higher rate earners get £500 before paying tax thanks to the personal savings allowance.
If you If you don't pay income tax at all, you could be able to get as much as £12,500 worth of interest a year before tax is applied.
Most people don't earn anything like that much interest on their savings in a year - so they should be able to claim the tax applied to their PPI payouts back.
You can go back four tax years for these refunds, which can be worth hundreds of pounds.
How much you get depends on your original PPI payout and your tax status.
If you think you might be owed tax back, you should use an HMRC 'claim a refund of income tax deducted from savings and investments' R40 form.
If you're not living in the UK, you need form R43.
