Credit, Collections & Insolvency News
The Competition and Markets Authority (CMA) has issued a formal warning to Monzo, NatWest, Virgin Money and Bank of Ireland for failing to send bank statements to 150,000 former customers. Competition rules require lenders to send customers a history of their current account banking activity within 40 days of closing their accounts.
As a result of the Retail Banking Market Investigation Order 2017, banks and building societies are required to send customers a history of their current account banking activity, called a transaction history, within 40 days of a customer or small business closing their current account. Transaction histories must be sent to at least 95% of such customers within 10 working days.
The Competition and Markets Authority (CMA) introduced this measure to make switching banks easier and to address concerns that customers who switched would lose access to their banking history – a key requirement for lenders offering credit.
The CMA has written to each of the four banks, which are sending all outstanding information to the affected customers. If the banks breach the order again, the CMA can take further action by issuing legally binding ‘Directions’. These could include banks having to introduce specific training or carrying out annual compliance audits to prevent this from happening in the future.
Adam Land, CMA Senior Director of Remedies Business and Financial Analysis, said “Nearly 150,000 people were affected by these banks’ breaches, with the majority being former Monzo customers. This may have made things harder for people trying to borrow money or apply for a mortgage.”
“The CMA’s work in the sector is making it easier for people to get a better deal from their bank. Banks must comply with all the rules – that includes providing a full transaction history promptly.”
“We will be watching closely to make sure these leading names stick to their word and don’t let their customers down again. The Bank of Ireland, Monzo, Natwest Group, and Virgin Money should be in no doubt that the CMA stands ready to take further action if these failures are repeated.”
