Six banks break UK rules on giving customers correct information

Fri, 22nd Jul 2022 21:56

(Alliance News) - Six high street banks have broken competition rules about keeping customers informed, the UK regulator has announced.

The Competition & Markets Authority said Lloyds Banking Group PLC, NatWest Group PLC, HSBC Holdings PLC, Barclays PLC, Metro Bank PLC and Bank of Ireland Group PLC all breached regulations intended to protect customers.

The watchdog said a number of Metro Bank customers were handed refunds after the high street challenger bank broke legislation.

Metro Bank overcharged 92 customers for entering unarranged overdrafts, the CMA said.

Among other breaches, Barclays was called out by the watchdog for failing to keep online information on interest rates for overdrafts up to date.

Lloyds was criticised for publishing incorrect service quality rankings regarding current accounts in leaflets and posters which "gave potential customers a misleading impression of its performance".

The CMA also highlighted that NatWest breached rules by failing to update its records following the closure of branches and ATMs.

All six banks have confirmed they are making changes to their operations to prevent further breaches.

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 six 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."

By Henry Saker-Clark, PA Deputy Business Editor

source: PA