Wednesday, August 10, 2022

Six banks found to have broken CMA rules about accuracy of information

Six high street banks have broken rules imposed by the Competition and Markets Authority under the Retail Banking Market Investigation Order 2017.

The banks found to have broken the rules are Bank of Ireland, Barclays, HSBC, Lloyds Banking Group, Metro Bank and NatWest.

Under the Order, banks and building societies must follow strict rules about informing customers of their services – from showing correct interest rates for current accounts, using accurate promotional materials online and within branches, to accurately displaying the right locations and opening times.

The breaches are:

  • Barclays failing to keep information on interest rates up to date for overdrafts on two of its webpages
  • HSBC failing to publish information about the maximum amount it can charge customers for overdrafts in all the places it should have done. It also showed out of date information relating to interest rates for business account overdrafts on one of its webpages
  • Lloyds Banking Group publishing incorrect service quality rankings relating to personal and business current accounts in leaflets and branch posters, which gave potential customers a misleading impression of its performance; and failing to keep information in relation to interest rates up to date for one of its overdrafts on one of its webpages
  • NatWest not updating records following branch and ATM closures. They also listed incorrect interest rates for small business loans when sharing information with independent price comparison tools
  • Bank of Ireland listing incorrect details of branch locations through Open Banking (after some had permanently closed) as well as wrong information about some current account charges. Tablet users were also not provided with a link to information on Bank of Ireland’s service quality via the banking app
  • Metro Bank overcharging 92 customers for entering an unarranged overdraft

All six banks have confirmed they are making changes to their operations to prevent further breaches – ranging from destroying out of date promotional materials, to updating internal checklists and retraining staff. Metro Bank have also refunded the customers affected.

Adam Land, Senior Director at the CMA, said: “We all have a right to expect up to date and correct information when making important decisions about our finances. It’s therefore very disappointing that these 6 major banks have failed to uphold rules that have been in place for the last five years.

“Customers have been let down, some of whom will receive refunds, so these high street names must get their act together. We will remain vigilant to ensure the rules are followed.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemichaving a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close