Danske Bank has agreed to refund around 305 small businesses that it charged to set up business accounts when they applied for bounce-back loans.

The Competition and Markets Authority (CMA) says that the bank will refund around £16,450 for breaking rules

Danske Bank has agreed to write to the 305 affected SME customers to apologise for requiring them to open a business current account as part of the Bounce Back Loan application process and to offer a choice to switch to a fee-free loan servicing account.

Danske Bank confirmed it has refunded all business current account charges and transactional fees incurred by the 305 impacted customers from the date of opening their business current account (plus 8% interest as compensation).