Credit, Collections & Insolvency News
Danske Bank has been reprimanded by the Competition and Markets Authority (CMA) over the treatment of some small businesses applying for Coronavirus Bounce Back loans, having required up to 205 firms to open business accounts to access a loan.
The CMA said this meant the firms faced new fees, warning that the practice restricts customer choice and, therefore, competition in the market. This is the second time that Danske has been reprimanded over the matter, with the CMA saying it was concerned that Danske “did not investigate the first breach in sufficient detail” so as to identify all affected customers. The watchdog also said that the second breach might not have come to light had Danske customers not seen the CMA announcement of the first breach and subsequently contacted the bank.
Danske Bank has wrote to affected customers and offered refunds of business current account charges and the option to switch to a fee-free loan servicing account.
In addition, to ensure future compliance, Danske has committed to take actions including implementing an enhanced staff training programme, appointing an independent body to conduct compliance audits and writing to its SME customers to increase awareness of the rules against bundling.