Thousands of Tesco Bank customers will be entitled to a refund after the lender told them their no claims bonus protection for motor insurance would be around £1.2 million cheaper collectively than it actually was.
In writing to 124,451 customers between April 2020 and September last year, the Competition and Markets Authority (CMA) said that Tesco Bank misled them into thinking their policies would be £10 cheaper than reality.
The CMA said that the bank will now explain the situation to customers, who can choose to keep the policy or get a refund.
