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Major UK banks broke CMA rules

HSBC, Lloyds, TSB, and AIB have been rebuked by the UK's competition watchdog for failing to meet rules on providing customers with clear and up-to-date information.

2 comments

Major UK banks broke CMA rules

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

HSBC listed 167 closed branches as still being open and provided incorrect information on business loan and overdraft rates, says the Competition and Markets Authority.

TSB failed to disclose the maximum amount customers would be charged for going into unarranged overdraft; AIB failed to make available the correct annual rates for some loans and some overdrafts through Open Banking and on its own website; and Lloyds failed to make available addresses of 363 ATMs through Open Banking.

The CMA has issued the four lenders with public letters. Lloyds, TSB and AIB have agreed changes but HSBC - which the CMA says has breached the order more extensively - has been given detailed directions which include an action plan.

Dan Turnbull, senior director, CMA, says: "People deserve banks they can trust to serve them well. Having correct information is essential when making important decisions about our finances. Banks handling our hard-earned money should have adequate processes in place to ensure this happens.

"It’s disappointing that 7 years on, we have to put in place formal enforcement measures to secure better compliance from a major bank like HSBC which, yet again, is in breach of the rules."

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Comments: (2)

A Finextra member 

Quelle surprise; shame the CMA can't look at how HSBC failed to communicate 'clawback' to it's own staff, many now struggling as they see their bank pension reduced when they reach state pension age.... 

Arshad Noor CTO at StrongKey

Does the CMA not have the authority to fine such companies for violations? If it does not, then the situation will never improve. I suggest looking at the US' Consumer Finance Protection Bureau (CFPB)  - setup during the Obama administration - as an example of some good work they are performing. According to their websites, they were responsible for getting $20B returned to consumers of the life of the agency (probably around 10 years now).

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