Supermarket chain Tesco's bank has been ordered to repay thousands of drivers after admitting to an error.
The supermarket chain's banking service is thought to have sent out renewal letters incorrectly stating the price of no claims bonus protection.
No claims bonus (NCB) protection is additional cover that drivers can purchase which protects their no claims discount in the event of an accident.
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From April 2020 to September 2021, more than 120,000 Tesco Bank customers were misled into thinking their NCB protection was cheaper than it actually was – by roughly £10 – after they received inaccurate renewal letters.
A CMA spokesperson said: “This error meant that motorists were unable to make a fully informed decision as to whether they wanted no claims bonus protection.
"Had they been told the right price, they may have decided to cancel their no claims bonus protection or switch to another, cheaper provider.
“Thanks to our action, Tesco customers will now have the chance to decide whether they want to keep their current protection or get their money back.”
A Tesco spokesperson said: "“We apologise for this error, which we have now fixed. All existing customers who were impacted have been contacted with the option of a refund and the removal of their no claims bonus protection.
"However, the overwhelming majority of customers are choosing to retain their protection. In all cases there was no impact on the cover provided to our customers.”
